Annual report
2006-2007 ICAC Annual report 2006-2007 Independent Commission Against Corruption
Independent Commission Against Corruption
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Independent Commission Against Corruption
Address Level 21, Piccadilly Centre, 133 Castlereagh Street, Sydney NSW 2000
Postal GPO Box 500, Sydney NSW 2001
Email [email protected]
telephone (02) 8281 5999 or 1800 463 909 (toll-free for callers outside metropolitan Sydney)
TTY (02) 8281 5773 (for hearing-impaired callers only)
facsimile (02) 9264 5364
Website www.icac.nsw.gov.au
Business hours 9.00 am – 5.00 pm Monday to Friday The Hon Peter Primrose MLC The Hon Richard Torbay MP President Speaker Legislative Council Legislative Assembly Parliament House Parliament House Sydney NSW 2000 Sydney NSW 2000
25 October 2007
Mr President Mr Speaker
Under section 76 of the Independent Commission Against Corruption Act 1988, I am pleased to forward to each of you the ICAC annual report for the year ended 30 June 2007 for presentation to Parliament.
The report has been furnished in accordance with the Independent Commission Against Corruption Act 1988 and the Annual Reports (Departments) Act 1985.
Pursuant to section 78(2) of the ICAC Act, I recommend that this report be made public immediately. This recommendation allows either presiding officer of the Houses of Parliament to make the report public, whether or not Parliament is in session.
Yours faithfully
The Hon Jerrold Cripps QC Commissioner
CONTENTS
Commissioner’s foreword 4 Chapter 5: Accountability 59 Overview 60 Chapter 1: Overview of results for 2006–07 7 Reporting to the Parliamentary Joint Committee The ICAC charter 8 and Inspector of the ICAC 61 Key results for 2006–07 8 Business activity compliance and governance 63 KRA 1: Exposing corruption 8 Reporting the work of the ICAC 65 KRA 2: Preventing corruption 10 KRA 3: Accountability 11 Chapter 6: Our organisation 67 KRA 4: Our organisation 12 Overview 68 Performance results 68 Chapter 2: Assessing matters 13 A learning organisation 69 Overview 14 Provide a safe, equitable, productive and satisfying Profile of matters received 14 workplace 71 Complaints from the public (section 10 complaints) 16 Be a lead agency in our governance and Protected disclosures 19 corporate infrastructure 72 Reports from public sector agencies (section 11 reports) 22 Monitoring performance and effective How matters are analysed 25 resource management 75 The assessment process and decisions 26 Chapter 7: Financial statements 77 Outcomes of matters closed 29
Appendices 97 Chapter 3: Investigating corruption 31 Appendix 1: Complaints profile 99 Overview 32 Appendix 2: Statutory reporting 108 Continuous improvement of investigation practices and administration 32 Appendix 3: Prosecutions and disciplinary actions in The investigation process 33 2006–07 arising from ICAC investigations 110 Develop strategic alliances to optimise investigative Appendix 4: Implementation of recommendations for outcomes 34 reform arising from ICAC investigations 117 Investigations in 2006–07 35 Appendix 5: The ICAC and litigation 118 Use of statutory powers 36 Appendix 6: Legal change 119 Compulsory examinations and public inquiries 38 Appendix 7: Complaints against ICAC officers 119 Investigation reports 39 Appendix 8: Privacy and personal information 119 Investigation outcomes 41 Appendix 9: Statement of affairs 119 Appendix 10: Freedom of information 120 Chapter 4: Preventing corruption 43 Appendix 11: Participation in significant committees 122 Overview 44 Appendix 12: ICAC publications in 2006–07 124 Continuous improvement of prevention practices and knowledge 45 Appendix 13: Summary of training engagements, presentations and delegation visits 125 Strategies and projects to resist and respond to corruption 45 Appendix 14: Overseas travel 128 Corruption prevention guidance and advice 50 Appendix 15: Organisational chart 129 Promoting community awareness and confidence Appendix 16: Chief Executive Officer and Senior in reporting corruption 55 Executive Service 130
ICAC Annual Report 2006–2007 Appendix 17: Access and equity 131 Appendix 18: Disability Action Plan 136 Appendix 19: Ethnic Affairs Priorities Statement 136 Appendix 20: Commission Consultative Group 137 Appendix 21: Occupational health and safety (OHS) 137 Appendix 22: Training statistics 138 Appendix 23: Consultancies 138 Appendix 24: Payment performance indicators 139 Appendix 25: Electronic service delivery 139 Appendix 26: Insurance activities 139 Appendix 27: Major assets 140 Appendix 28: Energy management 140 Appendix 29: Waste reduction and purchasing policy 140 Appendix 30: Code of conduct 140 Appendix 31: Review of credit card use 147 Appendix 32: Major works in progress 147 Appendix 33: Guarantee of service 147
Index 148
Contents COMMISSIONER’S FOREWORD
ICAC Annual Report 2006–2007 During the financial year ending 30 June 2007 the Conformably with a practice started in 2001, this year Commission received and assessed 2,149 matters, the Commission in the discharge of its education and most of which were not markedly dissimilar from the prevention functions visited two regional centres: matters received during 2005–06. There were 522 New England and the North Coast. The Commission reports of suspected corrupt conduct from principal attaches importance to these visits because they bring officers of public agencies pursuant to section 11 of the its identity to the attention of the general public in ICAC Act, 680 complaints from members of the public country areas and encourage people to cooperate pursuant to section 10 of the Act and 194 protected with the work of the Commission. They also offer disclosures by public officers. to NSW public sector employees in the areas visited the opportunity to participate in workshops covering The Commission commenced investigating 73 matters a range of corruption-related issues, including tips in 2006–07. Of these, 28 derived from section 10 and advice on how to build corruption resistance complaints, 31 from section 11 reports, six from within their local agencies. The Commission conducts protected disclosures and eight from other sources. participant evaluations of these regional visits which During the year the Commission undertook four have shown that the visits are highly valued. public inquiries. As well, the Commission undertook There has always been debate concerning the efficacy investigations of two allegations of corrupt conduct of strategies and suggested practices designed to without having a public inquiry and in respect of reduce the incidence of corrupt conduct in NSW. It which there were no findings of corrupt conduct but is difficult, if not impossible, to precisely identify how corruption prevention recommendations were made. much corruption there was in NSW before the ICAC commenced its work in 1988 or, indeed, how much In total, six investigation reports were published which corruption would have remained undetected in the made findings of corrupt conduct against 17 people State had the ICAC not undertaken its work, and what and 113 corruption prevention recommendations (of works and what doesn’t. The Commission is entitled, I these two related to inquiries that had been concluded think, to boast that public exposure of corrupt conduct during 2005–06 and another was a report made and the recommendations and publications of the pursuant to section 14(2) of the Act). In its reports Commission concerning corruption prevention have the Commission included statements that it was of the had a significant effect on the reduction of corrupt opinion that consideration should be given to obtaining conduct. the advice of the Director of Public Prosecutions with respect to the prosecution of 16 people for specified Of significance is the fact that when the Commission criminal offences. was established in 1988, the then Premier the Hon Nick Greiner AC expressed the opinion that the most In addition to its investigative function, the Commission important function of the Commission would be to is charged with providing education and advice to restore and maintain public confidence in the integrity agencies to minimise corrupt conduct. During 2006–07, of public agencies and of people holding positions of it produced six corruption prevention advice or public trust. In December 2006, a community attitude research publications, responded to 276 advice requests survey of more than 500 NSW residents found that 82 and delivered 70 training courses and presentations in per cent of people interviewed were aware of the work compliance with this function. During the year a great undertaken by ICAC and 93 per cent of those thought deal of work went into the planning of the inaugural that the Commission was ‘a good thing’ (meaning that Australian Public Sector Anti-Corruption Conference by its work the Commission promoted confidence in (in conjunction with the Queensland Crime and the integrity of the public institutions of NSW). Misconduct Commission and the Western Australian As with any public institution accountability and Corruption and Crime Commission). The conference transparency (so far as both are practicable and will be held in Sydney in October 2007 and aims to possible) are important. The legislation provides for promote awareness of corruption risks and provide accountability by the ICAC to the Parliamentary Joint delegates with advice and strategies to deal with those Committee and the Inspector of the ICAC, both risks. having the function to monitor the performance of
Commissioner’s foreword the Commission. During the year the Commission cooperated with the Parliamentary Joint Committee and the Inspector.
The Commission has been given extensive coercive and covert powers by the Parliament. These are necessary to investigate effectively allegations of serious and systemic corruption. The Commission has always exercised its discretionary functions in a responsible manner.
In his reports to the Parliament the Inspector has found no improprieties by members of the Commission discharging their functions. In addition the NSW Ombudsman inspects records of authorised telephone interceptions, listening devices and controlled operations and his findings have been that the records of the Commission have complied with the relevant legislative requirements.
On 21 June 2007 a new Parliamentary Committee was appointed by the 54th Parliament. The Commission looks forward to working with this Committee over the next three years.
During the year the Commission has operated effectively and efficiently in the discharge of its functions under the legislation. I commend the staff of the Commission for their efforts and dedication in contributing to the achievements of the Commission thus far during my term.
Yours faithfully
The Hon Jerrold Cripps QC Commissioner
ICAC Annual Report 2006–2007 CHAPTER 1: OVERVIEW OF RESULTS FOR 2006-07
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Chapter
THE ICAC CHARTER KEY RESULTS FOR 2006–07
n KRA 1: Exposing corruption n KRA 2: Preventing corruption n KRA 3: Accountability n KRA 4: Our organisation
The ICAC charter Key results for 2006–07
The Independent Commission Against Corruption The ICAC Strategic Plan 2006–10 sets out four key (ICAC) was established as an independent and result areas (KRAs) for 2006–07: accountable body by the Independent Commission Against KRA 1: Exposing corruption Corruption Act 1988 (the ICAC Act) in response to growing community concern about the integrity of KRA 2: Preventing corruption public administration in NSW. The principal objectives KRA 3: Accountability of the ICAC are: KRA 4: Our organisation. investigating, exposing and preventing corruption In 2006–07 each division developed and worked to an educating public authorities, public officials and individual annual operational plan aligned with the members of the public about corruption and its ICAC Strategic Plan. Each division reported quarterly detrimental effects. to the Executive Management Group against its operational plan.
For each KRA, the following sections specify the objectives that apply to each area, along with the key quantitative results in the areas of workload, work activity and performance. For information on the descriptive and qualitative results for each KRA, refer to the in-depth chapters that follow.
KRA 1: EXPOSING CORRUPTION
The objectives for KRA 1 are: A detailed description of Commission activities and results relating to KRA 1 is outlined in Chapter 2 detect and investigate corrupt conduct (Assessing matters) and Chapter 3 (Investigating identify corruption prevention issues through corruption). Table 1 sets out the key quantitative results investigations for workload, work activity and performance for KRA 1 ensure a best practice approach for all in 2006–07. investigations enhance complaint handling processes develop strategic alliances to optimise investigative outcomes.
ICAC Annual Report 2006–2007 Achievements Looking forward
In 2006–07, the ICAC: Continue to enhance responsiveness and quality in the handling of matters received continued to focus investigative activities on serious Continue to focus investigative activities on serious and systemic corrupt conduct, undertaking 73 and systemic corrupt conduct investigations Enhance staff training on the exercise of statutory completed six investigation reports powers and legislative responsibilities. conducted 24 days of public inquiries conducted 49 compulsory examinations made findings of corrupt conduct against 17 persons referred 16 persons to the Director of Public Prosecutions for the consideration of prosecution proceedings continued to review and, where appropriate, update its internal policies and procedures.
Table 1: Key quantitative results for corruption exposure activities
Measure 2004–05 2005–06 2006–07 Target 2007–2008^ Matters received* 2,511 2,191 2,149 n/a Average time taken to deal with matters (days) 41.2 45 97** tbd**** Preliminary investigations commenced*** 41 48 66 n/a Category 2 investigations commenced*** 3 7 1 n/a Category 1 investigations commenced*** 7 8 11 n/a Investigations finalised in 6 months 30 24 53 n/a Percentage of investigations completed within 12 months 30% 82% 92% >90% Number of public inquiries 8 4 4 n/a Number of public inquiry days 94 27 24 n/a Number of compulsory examinations 43 32 49 n/a Number of corrupt conduct findings 15 61 17 n/a Number of investigation reports to Parliament 6 7 5^^ n/a Percentage of investigation reports completed within 3 months of completion of 0 30% 25% 80% public inquiry Number of persons prosecuted arising from investigations 9 15 7 n/a Number of persons subject to disciplinary actions commenced arising from 0 0 3 n/a investigations
^ For measures which reflect incoming work or activity beyond the control of the ICAC targets are not set, and not applicable (n/a) appears in the target column. ^^ Also during the year the ICAC released one investigation report into Burwood Council under section 14(2) of the ICAC Act. * ‘Matters’ refers to all information received by the ICAC about alleged corrupt conduct. It includes section 10 complaints, section 11 reports, protected disclosures and all other categories of information received. ** Two main factors have created the increase in average time taken to deal with matters. First, a small number of matters took an unusually long time to complete. These were matters where the ICAC required a response from agencies and, in these cases, the agencies took considerable time to prepare the responses. Secondly, the Assessments Section carried a number of staff vacancies throughout the year which contributed to longer finalisation times. *** During 2006–07 the Commission revised the categories of investigation from three to two. See p.33 for more discussion on this. **** To be determined. The Commission is currently examining workflows and activities in respect of setting targets for dealing with matters as well as developing new measures for the next reporting period. A new target will be set post-review in 2007–08.
Chapter 1: Overview of results for 2006-2007
KRA 2: PREVENTING CORRUPTION
The objectives for KRA 2 are: finalised a corruption resistance training package provide a range of targeted strategies to for the NSW public health sector develop the public sector’s capacity to resist and released guidelines on lobbying local councillors in appropriately respond to corruption response to investigations and complaints provide guidance and advice to the NSW public examined the environment in which corrupt sector on issues that may lead to corrupt conduct conduct had occurred in six investigations to if unchecked identify systemic issues for the agencies concerned promote community awareness and confidence in to address. reporting corruption. Looking forward A detailed description of Commission activities and Continue to improve prevention knowledge and results for KRA 2 is outlined in Chapter 4 (Preventing expertise corruption). Table 2 sets out the key quantitative results for workload, work activity and performance for KRA 2 Host the inaugural Australian Public Sector Anti- in 2006–07. Corruption Conference from 23 to 26 October 2007 Achievements Review and finalise the following publications: – Corruption risk management tip sheet In 2006–07, the ICAC: – Use and misuse of public resources tip sheet conducted successful outreach visits to the New England and North Coast regions – Managing an organisation through an ICAC inquiry published guidelines on combating occupational licensing risks and on protecting identity Continue the Rural and Regional Outreach Program. information and documents
Table 2: Key quantitative results for corruption prevention and education activities
Measure 2004–05 2005–06 2006–07 Target^ Telephone/email requests for corruption prevention advice 333 246 244 n/a Written requests for corruption prevention advice 48 28 32 n/a Corruption prevention advice relating to complaints and reports of corrupt conduct 67 50 49 n/a Rural and Regional Outreach strategy visits 2 2 2 2 Speaker presentations delivered 43 33 31 30 Training sessions delivered 45 61 39 40 Corruption prevention recommendations in investigation reports published in the 37 78 113 n/a period Percentage of corruption prevention recommendations in investigation reports 95% 85% 91% 80% implemented, as at 30 June 2007 Percentage of public inquiries which resulted in the making of corruption prevention - - 85% 90% recommendations Number of website visitors 41,875 77,706 97,430 70,000 Number of external visitor sessions to ICAC website 404,013 478,821 n/a Number of editions of Corruption Matters newspaper published 2 2 2 2 Percentage of respondents to the Community Attitudes Survey who believe the - - 72% 60% ICAC has succeeded in exposing corruption Percentage of respondents to the Community Attitudes Survey willing to report - - 80% 60% corruption Number of advice tip sheets - - 1 2 Number of prevention or research reports published - 7 6 3
^ For measures which reflect incoming work or activity beyond the control of the ICAC targets are not set, and not applicable (n/a) appears in the target column.
10 ICAC Annual Report 2006–2007
KRA 3: ACCOUNTABILITY
The objectives for KRA 3 are: Achievements provide timely, accurate and relevant reporting In 2006–07, the ICAC: to the Inspector of the ICAC and the NSW continued to provide accurate, timely and relevant Parliamentary Joint Committee (PJC) reports to the Inspector of the ICAC and the PJC ensure all business activities comply with all received no successful legal challenges to ICAC regulatory and standards requirements operations or contents of investigation reports report publicly about the work of the Commission. reviewed and enhanced liaison and reporting A detailed description of Commission activities procedures with the Inspector of the ICAC. and results for KRA 3 is outlined in Chapter 5 Looking forward (Accountability). Table 3 sets out the key quantitative results for workload, work activity and performance for Develop an open and accountable relationship with KRA 3 in 2006–07. the newly appointed Parliamentary Joint Committee Respond to Parliamentary Joint Committee and Inspector requests in a timely and cooperative way Continue to ensure best practice in internal governance and accountability.
Table 3: Key quantitative results for accountability activities
Measure^ 2004–05 2005–06 2006–07 Parliamentary Joint Committee meetings 2 0 1 NSW Ombudsman inspection of telephone intercept and controlled operations records 4 4 3 Number of reports provided to the Inspector of the ICAC – – 11 Number of audits conducted by the Inspector of the ICAC – – 2 Number of assumed identity audits 1 1 1
^ Because these measures reflect incoming work or activity beyond the control of the ICAC targets cannot be set.
Chapter 1: Overview of results for 2006-2007 11 KRA 4: OUR ORGANISATION
The objectives for KRA 4 are: enhanced document scanning to include documents seized during investigations continue to develop as a learning organisation that reviewed and updated information system security embraces a culture of continuous improvement, policies and practices to successfully achieve excellence and sharing of knowledge accreditation to the latest ISO/IEC 27001:2005 provide a safe, equitable, productive and satisfying International Standards for Information Security workplace delivered 31 external speaker presentations, be a lead agency in our governance and corporate reflecting the recognition of ICAC expertise in infrastructure corruption investigation and prevention monitor our performance to ensure work quality undertook specific initiatives in accordance with the and effective resource management. Commission’s Ethnic Affairs Priorities Statement, Disability Action Plan, Occupational Health and A detailed description of Commission activities and Safety and Risk Management Plan, Spokeswomen’s results for KRA 4 is outlined in Chapter 6 (Our Program and the NSW Government Action Plan for organisation). Table 4 sets out the key quantitative Women. results for workload, work activity and performance for Looking forward KRA 4 in 2006–07. Achievements Continue to develop staff by targeting individual and corporate learning plans around position skills In 2006–07, the ICAC: competencies, including training in core business promoted the Commission’s learning strategy with systems 803 attendances at training activities Undertake the selection and commence the assessed all positions to determine the essential development and implementation of a new competency skills that will be used as a basis for complaints handling and case management system future learning and development programs Rebuild the Commission’s website to enhance enhanced corporate governance through the review business processes for users in the areas of and redevelopment of the code of conduct and roll- online complaint lodgement, tailored information, out of the new code to staff search and navigation, download of publications, completed a feasibility study and business case for and promotion and registration for ICAC training replacing the Commission’s complaint handling courses and case management system, resulting in approval Continue to provide opportunities for staff to work of funding from the NSW Government for the in multi-disciplinary teams and projects. development of a new complaints and case management system commencing in 2007–08
Table 4: Key quantitative results for activities relating to our organisation
Measure 2004–05 2005–06 2006–07 Target^ Average full-time equivalent staff numbers 112.6 105.2 111.5 114 Participants in training activities 380 621 803 n/a Average training days per employee n/a 5.8 5.2 >5 Speaker presentations delivered (professional recognition) 43 42 31 40
^ For measures which reflect incoming work or activity beyond the control of the ICAC targets are not set, and not applicable (n/a) appears in the target column.
12 ICAC Annual Report 2006–2007 CHAPTER 2: ASSESSING MATTERS
12 3 4 5 6 7 8
Chapter 13
KRA 1: EXPOSING CORRUPTION n Overview The objectives for KRA 1 are: n Profile of matters received n detecting corrupt conduct n Complaints from the public (section 10 complaints) n enhancing complaint handling processes. n Protected disclosures n Reports from public sector agencies (section 11 reports) n How matters are analysed n The assessment process and decisions n Outcomes of matters closed
Overview
The Assessments Section is responsible for receiving As well as section 10 complaints, section 11 reports and initially assessing all matters received by the and protected disclosures, the Commission receives Commission. In 2006–07, there were 2,149 matters information on other matters and from other sources. received and the vast majority of these were managed These are classified as: by the Assessments Section. information, when material from members of the The section underwent structural change throughout public does not include any allegations of corrupt the year, in part to address concerns about conduct responsiveness and also to enable the manager to enquiry, when a member of the public seeks better focus on strategic direction. This resulted in advice or clarification, usually about whether a the creation of a deputy manager’s role. A number particular situation might indicate corrupt conduct of procedural improvements were also introduced outside jurisdiction, when the matter does not to enhance the section’s complaint handling capacity. involve a NSW public sector agency or official. These included revision of all policies and templates and When possible, the ICAC refers the matter to the analysis of staff training needs. relevant agency The Assessments Section has 11 full-time staff and a dissemination, when state and commonwealth budget of $928,562. The section is led by the Manager, agencies, usually law enforcement bodies such as Assessments, Ms Jacqueline Fredman. the NSW Police Force and the Australian Federal Police, provide information about corrupt conduct Profile of matters received that may be occurring own initiative, when the ICAC can instigate an In 2006–07 the Commission received 2,149 matters investigation without an external referral (section and, of those that were within the Commission’s 20 of the ICAC Act) jurisdiction, 1,396 were from three sources: intelligence report, when government agencies provide general information members of the public lodging complaints under section 10 of the ICAC Act (section 10 complaints) referrals from Parliament, when both houses of the NSW Parliament refer a matter under section principal officers of NSW public sector agencies, 73 of the ICAC Act. who have a duty to report suspected corrupt conduct under section 11 of the ICAC Act (section Table 5 shows all matters received by matter category 11 reports) for 2006–07 as well as comparison with 2004–05 and public sector employees lodging complaints under 2005–06 figures. the Protected Disclosures Act 1994 (the Protected Disclosures Act).
14 ICAC Annual Report 2006–2007 The Commission accepts anonymous complaints. In Figure 1: Mode of initial contact for all 2006–07, 13 per cent of complaints from members matters received of the public and 32 per cent of complaints by public officers under the Protected Disclosures Act were anonymous.
The Commission receives information in a number of ways. Members of the public and public sector employees can report their matter to the Commission in writing, by telephone or email, in person or online via a complaints form on the Commission website at www.icac.nsw.gov.au. Figure 1 shows that most people refer their matter or complaint to the Commission by telephone.
Table 5: Matters received by category in 2006–07, compared to the previous two years (with proportions of the total for each year)
Category 2004–05 2005–06 2006–07 Complaints from the public (section 10 complaints) 877 790 680 (34.9%) (36.1%) (31.6%) Reports from public sector agencies (section 11 reports)* 516 495 522 (20.6%) (22.6%) (24.3%) Information 393 304 361 (15.7%) (13.9%) (16.8%) Protected disclosure 257 235 194 (10.2%) (10.7%) (9.0%) Enquiry 228 192 198 (9.1%) (7.3%) (9.2%) Outside jurisdiction 228 163 174 (9.1%) (8.8%) (8.1%) Dissemination 4 10 17 (0.2%) (0.5%) (0.8%) Own initiative 5 2 3** (0.2%) (0.1%) (0.1%) Intelligence report 3 0 0 (0.1%) (0%) (0%) Referrals from parliament 0 0 0 (0%) (0%) (0%) Total 2,511 2,191 2,149
* This figure represents the number of section 11 reports received. As some agencies report by schedule, their reports may contain more than one matter. In 2006–07 the ICAC received 73 schedules containing reports on over 700 new matters. ** Two progressed to investigation. One did not.
Chapter 2: Assessing matters 15 Complaints from the public Members of the NSW public most frequently allege corruption in the local government sector, with more (section 10 complaints) than four times the number of complaints about this sector than the next most complained about sector. In 2006–07 the Commission received 680 section 10 Experience suggests that this result is due to the high complaints which contained 885 allegations. Under level of people’s interaction with local government section 10 of the ICAC Act, any person can make a and the personal interest many take in its decisions. complaint to the Commission about a matter that Other ICAC data support the result, showing that concerns or may concern corrupt conduct defined in development applications are among the most the ICAC Act. The ICAC refers to complaints made frequently complained about public sector activities. by members of the public – as well as those made Case Study 1 illustrates the type of complaints made by by public sector employees which did not meet the the general public about development applications. criteria to be classified as a protected disclosure Some incoming matters do not, even if substantiated, under the Protected Disclosures Act – as section 10 amount to corrupt conduct. The ICAC can, depending complaints. on the nature of the matter and its level of seriousness, The accompanying figure shows the different refer matters to the agency in question under section government sectors about which allegations of corrupt 19 of the ICAC Act for that agency to take any action conduct were made under section 10 in 2006–07 (raw deemed appropriate. With local government matters, figures are in Appendix 1). the ICAC can also consider referral to the Department of Local Government, as Case Study 2 shows.
Figure 2: Allegations made in section 10 complaints by government sector
16 ICAC Annual Report 2006–2007 CASE STUDY 1
No horses in my backyard
A concerned local resident complained that a regional council had approved a Development Application to build horse stables, despite a contrary recommendation from council planning staff.
The resident gave the ICAC a copy of a planning staff member’s report recommending rejection because the application was, among other things, inconsistent with council’s local environment plan and policy on keeping animals. The report noted that, while zoning of the land allowed for an animal establishment, local residents would be adversely affected by noise and odour and suffer a significant loss of amenity.
The resident also provided the ICAC with copies of letters she had written to council, expressing her dissatisfaction with the decision.
It was clear that there was considerable local opposition to the development application. However, there was no indication, based on material provided by the complainant, that council’s approval was motivated by corrupt conduct. As the Assessment Panel determined, it is not necessarily corrupt conduct for a council to make a decision contrary to the recommendation of planning staff.
CASE STUDY 2
Living next door to the mayor
A resident lodged a Development Application (DA) and was advised several months later that, rather than being dealt with initially by a council officer who was to have compiled a report, it was being put before council. The complainant contended that her history with a councillor had been unpleasant and had become violent on occasion, resulting in the police being called.
Over one year after its lodgement, the DA had still not been put before council, and had been withdrawn twice at the last minute. The councillor in question had since become mayor and a report on the DA had been completed by a council officer, who recommended its approval. The mayor was seeking an independent review of council’s report on the basis of bias by the responsible council officer, about whom the mayor had lodged a grievance.
As the matter did not indicate serious and systemic corrupt conduct, but appeared to warrant further investigation, the ICAC determined to refer it to the Department of Local Government for any action that this oversight agency deemed appropriate.
Chapter 2: Assessing matters 17 The five most frequent workplace activities about mentioned in allegations. Similarly, breach of policy which the Commission received complaints, as well or procedure was the most frequent type of conduct as the five most frequent types of conduct alleged, mentioned in allegations received, as in 2005–06. are shown in the figures below. Both figures exclude unspecified activities or types of conduct. Appendix 1 provides a full list of the workplace activities and types of conduct about which the As was the case in 2005–06, building and development Commission received complaints. approvals were the most frequent workplace activities
Figure 3: Complaints from the public (section 10) in 2006–07, showing the five most frequent types of workplace activities mentioned
Figure 4: Complaints from the public (section 10) in 2006–07, showing the five most frequent types of conduct alleged
18 ICAC Annual Report 2006–2007 Protected disclosures
NSW public sector employees who raise corruption allegations about a NSW agency or official with the ICAC may be entitled to receive protection under the Protected Disclosures Act if their complaint meets certain criteria. The Act makes it an offence to take retaliatory action against someone who has made a protected disclosure.
In 2006–07, the ICAC received 194 protected disclosures from public sector employees, containing 239 allegations. Figure 5 shows the number of allegations, by government sector, for all protected disclosures received during the year (raw figures are in Appendix 1). As with section 10 complaints, the largest number of allegations concerned local government.
Prior to making any enquiries about protected disclosure allegations, the ICAC seeks written authority from the complainant to be identified. In 2006–07 where consent was requested, 57 per cent agreed. The five most frequent workplace activities about When consent is not given, the Commission may, under which the Commission received protected disclosures, section 22 of the Protected Disclosures Act, disclose as well as the five most frequent types of conduct confidential information if it is considered necessary to alleged, are shown in Figures 6 and 7. Both figures effectively investigate a matter or in the public interest exclude activities or conduct type that was unspecified. to do so.
Figure 5: Protected disclosure allegations by government sector 2006–07
Chapter 2: Assessing matters 19 As was the case in 2005–06, employment practices Protected disclosures are received by the ICAC from was the most frequent workplace activity mentioned all levels of the public sector. Both the agency and in protected disclosure allegations. Similarly, breach of the officer making the complaint are responsible for policy or procedure was the most frequent type of ensuring that confidentiality is maintained, according conduct mentioned in allegations, as in the previous to the provisions of the Protected Disclosures Act. year. Protected disclosures can range from allegations about colleagues to concerns about the conduct of the Appendix 1 provides a full list of the workplace officers responsible for protected disclosures in the activities and types of conduct about which the agency. In Case Study 3, an officer was able to report Commission received complaints. concerns about long-term bullying to the ICAC under the legislation.
Figure 6: Protected disclosure allegations in 2006–07, showing the five most frequent types of workplace activities mentioned
Figure 7: Protected disclosure allegations 2006–07, showing the five most frequent types of conduct alleged
20 ICAC Annual Report 2006–2007 CASE STUDY 3
A public sector employee speaks out
An employee in the allied health services complained to the ICAC that she had been bullied and harassed by a female co-worker since transferring to a particular region two years earlier. The employee claimed the situation had been exacerbated by her persecutor’s de facto partner, another co-worker, who participated in the threatening behaviour. The complainant had been threatened that she would be ‘set up’. This meant that drugs, for which she was responsible, would go missing and her harassers boasted they had ‘gotten rid of people before’.
The employee had lodged an official grievance and was offered mediation, which she declined. She contended that a superior advised her that if the matter could not be resolved she was free to seek alternative employment. She also contended that her harassers’ behaviour worsened after she lodged the grievance and numerous other staff had lodged similar complaints about the same people, to no avail. The harassing couple began to lodge complaints about those who had complained about them by writing fraudulent and vexatious letters to management.
The ICAC decided that the allegations did not, even if proven, amount to corrupt conduct. However, similar allegations of bullying and harassment had been received about the agency, particularly about the alleged inaction in response. This situation indicated a culture that permitted bullying to occur unchecked.
The maker of the protected disclosure consented to her identity being disclosed. This enabled the ICAC to refer the matter in considerable detail to the agency in question. As several complaints about the harassing couple had been received by the agency, it was able to set in train proceedings to terminate the employment of the couple.
Chapter 2: Assessing matters 21 Reports from public sector As in 2005–06, most allegations of corrupt conduct were made against local government and custodial agencies (section 11 reports) services, although the percentage of both types of allegations was considerably lower than the previous year. Section 11 of the ICAC Act requires principal officers of NSW public sector agencies, such as chief executive The five most frequent types of workplace activities officers, directors general of state government agencies about which the Commission received section 11 and general managers of local councils, to report reports, as well as the five most frequent types of suspected corrupt conduct to the ICAC. The majority conduct alleged, are shown in Figures 9 and 10. Both of matters reported by principal officers involves figures exclude unspecified activities or conduct. suspected conduct within their own organisations, In 2005–06, employment practices was the most although sometimes principal officers also advise the frequent workplace activity mentioned in section 11 Commission of corrupt conduct they suspect in other reports. This year, breaches of codes of conduct was public sector agencies. the most frequent, with employment practices being second. Principal officers are required to report suspicions of corrupt conduct promptly as delays may impair the Appendix 1 provides a full list of the workplace activities and types of conduct about which the ICAC’s ability to detect and expose corrupt activity. Commission received complaints. Case Study 4 illustrates how the ICAC was able to commence a meaningful investigation, due largely to the Case Study 5 is an example of a section 11 report timeliness of the referral by the agency. involving employment practices and an alleged breach of a code of conduct. It shows how an agency was able In 2006–07, the ICAC received 522 section 11 reports to rectify a situation due to its quick response, and with containing 615 allegations. Figure 8 shows the number the advice and assistance of the ICAC, take steps to of times allegations involved a particular sector of the ensure that future recruitment activity was not prone NSW Government (raw figures are in Appendix 1). to misconduct.
CASE STUDY 4
Did dollars buy public housing?
The Department of Housing referred to the ICAC allegations concerning a client service officer. Allegations had been made to the department by a public housing tenant who alleged that an officer was involved in corrupt activity. The tenant had been assaulted and, during discussions with departmental staff about relocating due to fears for his personal safety, named an officer as being extensively involved in corrupt activity.
That departmental officer was alleged to have solicited bribes to place tenants in housing and to have particularly favoured known drug dealers. The officer was alleged to have attended meetings with NSW Police officers to discuss using housing premises to monitor drug dealing activity. The officer was alleged to have passed on this information to the drug dealers involved.
The ICAC commenced an investigation called Operation Greenway, which involved the extensive use of listening devices and telephone intercepts, as well as analysis of documents obtained under notices compelling production from several departmental bodies. The departmental officer attended a compulsory examination at the ICAC, along with a number of public housing tenants from whom he had allegedly solicited bribes.
A public inquiry is set to commence in September 2007.
22 ICAC Annual Report 2006–2007 Figure 8: Section 11 reports received, showing allegations by sector
Figure 9: Allegations from reports from public sector agencies (section 11) 2006–07, showing the five most frequent types of workplace activities mentioned
Chapter 2: Assessing matters 23 Figure 10: Reports from public sector agencies (section 11) 2006–07, showing the five most frequent types of conduct alleged
CASE STUDY 5
A family affair
A public sector agency reported that a staff member had complained about a recruitment process. It was alleged that the successful applicant for the position was the niece of the recruitment panel convenor.
The complainant raised her concerns with the general manager who approached the convenor. The convenor admitted that the successful applicant was her niece and she had not declared her conflict of interest to the recruitment panel as she should.
The department had not made a formal job offer and was therefore able to terminate the tainted recruitment process and convene a new panel. The ICAC advised the department to undertake an internal investigation and forward its report to the Commission.
It transpired that the convenor, who resigned soon after the investigation, had not received training in recruitment and selection techniques for over 10 years, nor had she had refresher training in the department’s code of conduct. Although this did not excuse the conduct of the panel convenor, the department was advised by the ICAC to address the identified system weaknesses.
24 ICAC Annual Report 2006–2007 How matters are analysed
The Commission is required under section 12A of the ICAC Act to, as far as practicable, focus attention and resources on serious and systemic corrupt conduct. The assessment process considers:
whether allegations are within the Commission’s jurisdiction if they are serious or suggest systemic corruption risks or issues what information or evidence is potentially available ultimately, what action, if any, the Commission The Manager, Assessments Section, Ms Jacqueline Fredman, with Deputy Manager, Mr Paul Grech and Assessment Officer, should take on a matter. Mr Joel Alcock.
Commission officers analyse the information received The Commission often receives information that on to determine whether there are trends across a the face of it appears very serious. In these matters, particular sector, such as local government or licensing, Assessment Officers often have to make enquiries to in a particular agency, or even in a particular unit of that obtain further information to ensure the analysis of agency. Information is analysed to determine whether the matter is complete. This may involve contacting or corruption is occurring, or if there are appropriate interviewing the individuals who brought the matter systems in place for the agencies involved to minimise to the Commission’s attention, or obtaining further opportunities for corruption. Complaints and reports information and/or documents from the public sector that highlight corruption risk areas and trends help agency concerned. The following case study highlights the Commission to target its corruption prevention the importance of assessment enquiries in ensuring a work (see Chapter 4 ‘Preventing corruption’ for more thorough and accurate assessment that informs the information). Commission on how it should deal with a matter.
CASE STUDY 6
Assessment enquiries on a suspect super scheme
The Commission was notified under section 11 of the ICAC Act by an oversight agency about unusual trends in superannuation payouts to retiring senior staff at a NSW university. The oversight agency suspected that university management was artificially boosting staff income levels immediately prior to retirement in order to inflate their superannuation payouts. It was alleged the scheme was endorsed by the Vice-Chancellor.
It was decided that further enquiries were necessary before the matter could be properly assessed. Further material was obtained by issuing a notice compelling production of documents which were analysed by assessment staff and the Legal Division. This material disclosed that a number of senior university staff had entered into ‘pre-retirement contracts’ that provided a substantial increase in salary on the proviso the staff member retired at the end of the contract’s three-year term.
After analysing the contractual documents, the ICAC concluded that the scheme was the university’s workforce management strategy to encourage early retirement. There was no corrupt purpose behind the scheme. On this occasion, the Commission decided that formal investigation was not required and the matter was finalised in the Assessments Section.
Chapter 2: Assessing matters 25 The Commission also receives a lot of information which, while having substance, may not be investigated as it is relatively minor. In addition, the Commission receives material that lacks substance and does not warrant being investigated or otherwise pursued. These matters are generally declined or, if relevant to another agency, referred on.
In considering the profile of matters received by the Commission, care should be taken in drawing any adverse inferences from a large number of matters concerning a particular sector. This data cannot be interpreted as demonstrating significant corruption in that sector as there are many reasons why particular sectors may attract a larger number Deputy Commissioner, Ms Theresa Hamilton (right) with Media Manager, Ms Nicole Thomas. of matters. For example, some sectors, such as local government or housing, are involved in activities that affect people directly and/or personally. Similarly, in sectors with significant interaction with the general action, if any, should be taken on every matter received. public, complaints may concern problems unrelated If a matter is complex or needs further enquiries to to corruption, such as poor customer relations or be made before an appropriate course of action can dissatisfaction with a government policy or decisions. be determined, it may be reported to the Assessment Panel on several occasions. The assessment process and Reports submitted to the Assessment Panel include the allegations, supporting information, the outcome of decisions any enquiries, an initial assessment of the matter, and recommendations for future action. Every matter received by the Commission is registered For each matter, the Assessment Panel considers on a database and individually assessed by members of whether it is in jurisdiction, whether it presents the Assessments Section which takes into account: opportunities for identifying serious or systemic whether the matter is serious and/or systemic corruption, whether it is being or could be adequately handled by another agency and, even if corrupt conduct whether or not corrupt conduct is involved is not apparent, whether an agency’s systems and whether there is a reasonable line of inquiry to controls put the organisation at risk of corruption. pursue what information has been provided or could be The Deputy Commissioner, Ms Theresa Hamilton, obtained is the Chair of the Assessment Panel and is the direct supervisor of the Manager, Assessments, whether existing information supports the Ms Jacqueline Fredman as well as the Media Manager, allegations Ms Nicole Thomas. Ms Hamilton and Ms Fredman any prior or current related matters. are responsible for the integrity of Assessment Panel reporting processes and ensure that decisions of the All matters are reported to the Assessment Panel, Assessment Panel are implemented. which is composed of the Deputy Commissioner and the Executive Directors of the Investigation Division, After considering a matter, the Assessment Panel makes the Corruption Prevention, Education and Research one of five decisions. Division and the Legal Division, as well as the Manager of the Assessments Section. The panel usually meets twice a week and is responsible for determining what
26 ICAC Annual Report 2006–2007 1. Refer to another agency or take no action. These may involve contacting parties for more information, conducting research, and/or contacting The Commission’s role is to focus on serious or relevant agencies to ascertain whether the issues raised systemic corrupt conduct as far as practicable. have been previously dealt with, and the outcome A significant number of the matters the Commission of any enquiries. They may also include the agency receives can be appropriately referred to other providing copies of the relevant policies and procedures investigation agencies, such as the NSW Ombudsman so the Commission can examine whether there are and the Department of Local Government. Some may procedural deficiencies. be disciplinary or administrative matters that can be referred to the agency concerned. Other matters may Depending on the outcome of assessment enquiries, have already been adequately dealt with by the agency the Commission may decide to pursue the matter no reporting the matter. further or to refer it to another agency. In some cases, assessment enquiries may lead to an investigation. Many other matters do not meet the definition of corrupt conduct in the ICAC Act and therefore do not 4. Provide corruption prevention analysis warrant any action by the Commission, other than to and/or advice. notify the person who provided the information of the Commission’s decision. If a matter appears to mainly involve systemic issues rather than instances of corrupt conduct – or the After considering the results of any initial enquiries, the corrupt conduct has been dealt with but wider panel decides whether a matter should be referred or problems appear to exist – corruption prevention staff does not warrant any further action. may evaluate the situation and give advice on enhancing an agency’s capacity to minimise the risk of corruption 2. Requesting an investigation and report by or preventing the problem happening again. another agency. 5. Undertake an investigation. If an allegation of corrupt conduct is made about an agency, the Commission has the power under sections If a matter is very serious and likely to need the 53 and 54 of the ICAC Act to require that agency to Commission’s special powers to investigate the conduct its own internal investigation and then report allegations, such as requiring the production of evidence, its findings to the Commission. The Commission does executing a search warrant or conducting covert this after consulting with the agency and establishing operations, the Commission is likely to investigate the if it is appropriate for the agency to deal with the matter itself (see Chapter 3 ‘Investigating corruption’). matter. This power is usually used for relatively serious Such matters are usually referred to the Investigation matters that an agency can adequately and properly or Legal Divisions for preliminary investigation or investigate itself. In this way, the Commission oversees investigation. Only a small number of matters, with the the investigation by the agency. potential to expose significant or systemic corrupt conduct, will meet the criteria for a full investigation. The ICAC refers matters to agencies under sections Once a decision to investigate has been made, the 53 and 54 only if it considers the agency can investigate matter is overseen by a different committee, the the matter itself. It will not make such referrals if it Strategic Investigation Group, which also gives direction considers the agency might be compromised or lacks on handling each investigation. Chapter 3 ‘Investigating the capacity to conduct the investigation and report corruption’ has more detail on investigation and the on it adequately. Under the ICAC Act, the ICAC also group’s processes. has powers to deal with investigations or reports it considers unsatisfactory. Table 6 summarises Assessment Panel decisions in 2006–07. 3. Conduct assessment enquiries. In 2006–07, the Commission made 17 referrals under If the Assessment Panel decides that a matter should sections 53 and 54 of the ICAC Act. Case Study 7 is be considered further – but may not yet warrant an example of a referral which resulted in business investigation – assessment enquiries may be undertaken. improvements in an agency.
Chapter 2: Assessing matters 27 Table 6: Decisions by the Assessment Panel in 2006–07, compared to the previous two years
Assessment Panel decision 2004–05 2005–06 2006–07 Decisions to act upon a matter Referred to Assessments Section for further enquiries (includes sections 274 (10.2%) 279 (11.6%) 253 (12.4%) 53/54 referrals^) Referred to the Corruption Prevention, Education & Research Division for 39 (1.4%) 15 (0.6%) 41 (2.0%) further action Referred to the Investigation or Legal Divisions for preliminary investigation 72 (2.7%) 53 (2.2%) 73 (3.6%) or investigation Total number of decisions to act upon a matter 385 (14.3%) 347 (14.4%) 367 (18.0%) Decisions to decline a matter Immediate referral to another agency or no action taken by the ICAC, 2,308 (85.7%) 2,051 (85.5%) 1,673 (82.0%) following initial enquiries/research when needed Total number of decisions made* 2,693 2,398 2,040
Note: Percentages do not add up in column two due to rounding. * This table records Assessment Panel decisions made during 2004–05, 2005–06 and 2006-07. In some cases, more than one decision applies to each matter, since some matters were considered on more than one occasion. The table does not include all matters received in 2006–07, as some received towards the end of a reporting year will be assessed in the next financial year. ^ On occasion a matter will be referred back to an agency under sections 53 and 54 of the ICAC Act for it to conduct an investigation and to report back to ICAC on its findings. This mechanism ensures that allegations of serious and systemic corrupt conduct are properly investigated.
CASE STUDY 7
Swimming records in the spotlight
An anonymous complainant advised the ICAC that a swimming organisation had been allocated a 40-year, $3 million lease for a recently refurbished pool at a public authority, without competing in a tendering process to obtain that lease. It was alleged that a budgetary submission to Treasury had been falsified. The complainant also claimed that a high-ranking staff member of the public authority had been promoted without due process and was using a staff vehicle and other equipment for private use, including running a private enterprise.
The complaint was referred by the ICAC to the relevant government department responsible for overseeing the operations of the agency involved. That department was required under sections 53 and 54 of the ICAC Act to conduct an investigation and to report back to the ICAC. The department’s investigator interviewed numerous staff and reviewed a substantial number of records.
The allegations by the complainant were found in many respects to be based on a misunderstanding of key facts. For example, the ‘promotion’ was a sideways move from one regional area to another and did not require a merit selection process. The ‘private enterprise’ was a not-for-profit club which did not entail use of agency equipment. It did, however, come to light that the sports body had a far from adequate record-keeping system and many staff had a poor understanding of delegation authorities.
While no corrupt conduct was established, the agency’s management instigated remedial measures to address system inadequacies and training needs.
28 ICAC Annual Report 2006–2007 Outcomes of matters closed Case Study 8 is about a matter received from a member of the general public which the Assessment Panel assessed as a matter involving serious and The ICAC records outcomes on all matters once they systemic issues. The Assessment Panel decided to refer have been closed, including its own action and that of the matter to the Investigation Division and the matter the agencies that have been the subject of an allegation. ultimately went to a public inquiry and will be the As the ICAC has wide discretion on what to pursue subject of a public investigation report in 2007–08. and must focus on serious and systemic corruption as far as practicable, it does not know the outcome of all matters received. The table below shows the known and recorded outcomes for all section 10, section 11 and protected disclosure matters that the ICAC closed during 2006–07.
Table 7: Outcomes* recorded for substantive matters closed during 2006–07
Outcome Complaint Protected Report Total (section 10) disclosure (section 11) No. of persons subject to recommendations that advice of 3 0 13 16 Director of Public Prosecutions be sought for prosecution Disciplinary action taken by the agency: counselling 0 0 6 6 Disciplinary action taken by the agency: dismissal 0 0 6 6 Disciplinary action taken by the agency: other 1 1 9 11 Disciplinary action taken by the agency: resignation 1 0 9 10 ICAC compulsory examination (hearings held in private) 8 2 38 48^ ICAC public inquiry (hearings held in public) 1 0 3 4 ICAC intelligence assessment completed: matter not 0 0 3 3 investigated ICAC investigation (Category 1) 1 0 2 3 ICAC investigation (Category 2) 1 0 0 1 Intelligence or technical product passed to another agency 1 0 0 1 Matter referred to another law enforcement agency 8 0 1 9 No action warranted by the subject agency 57 11 26 94 No further action by the ICAC 538 132 372 1,042 Referred to the agency for action 2 0 4 6 Referred to the agency for information 103 32 25 160 Systemic issues identified by ICAC 2 1 9 12 Systemic issues addressed by the agency: amendments to 2 2 9 13 policy and procedure Systemic issues addressed by the agency: other 0 1 6 7
Systemic issues identified by the agency and recommendations 2 0 11 13 made: amendments Systemic issues identified by the agency and recommendations 1 1 2 4 made: other
* Total outcomes do not equal total matters closed as some matters had multiple outcomes.
^ One compulsory examination was in respect of an investigation commenced under section 20 of the ICAC Act, therefore the total number of compulsory examinations for 2006–07 is 49.
Chapter 2: Assessing matters 29 CASE STUDY 8
Bribes and brothels
The owner of a Parramatta massage parlour complained that the team leader of Compliance Services at Parramatta Council had solicited sex and cash payments to allow her to continue to operate in unauthorised premises. The ICAC determined to conduct an investigation as this conduct would, if established, constitute corrupt conduct within the meaning of the ICAC Act.
In the course of its investigation, the Commission obtained warrants to enable the use of listening devices, obtained and analysed relevant council files, lawfully executed a number of search warrants, undertook physical surveillance of suspected persons and interviewed and took statements from numerous people, including prostitutes and brothel owners. The investigative activities brought to light a number of women from whom the council officer had sought and accepted payments and sexual services.
Compulsory examinations were conducted by the ICAC before the two-day public hearing in May 2007. Council had earlier dismissed the officer involved as a result of the ICAC’s investigation. The ICAC’s report will be published in 2007–08.
30 ICAC Annual Report 2006–2007 CHAPTER 3: INVESTIGATING CORRUPTION
21 3 4 5 6 7 8
Chapter 31
KRA 1: EXPOSING CORRUPTION n Overview
The objectives for KRA 1 are: n Continuous improvement of investigation practices and administration n detect and investigate corrupt conduct n The investigation process n identify corruption prevention issues through investigations n Develop strategic alliances to optimise investigative outcomes n maintain strategic alliances to optimise investigative and preventative outcomes. n Investigations in 2006–07 n Use of statutory powers n Compulsory examinations and public inquiries n Investigation reports n Investigation outcomes
Overview
One of the Commission’s main functions is to investigate and publicly expose corrupt conduct so corrective action may be taken and the recurrence of corruption minimised.
Only a small number of matters coming into the Commission are referred for investigation. From the 2,149 matters received in 2006–07, a total of 73 matters were referred for investigation. Of the matters investigated, the majority came from either section 11 reports (31) or section 10 complaints (28). Four matters proceeded to public inquiry and six reports on investigations were completed in the period, including one investigation report prepared under section 14(2) of the ICAC Act. Also during 2006–07, the division Mr Mick Symons, Executive Director, Investigation Division. finalised 63 investigations which took 155 days on average. Continuous improvement of The Investigation Division has primary responsibility investigation practices and for conducting Commission investigations and is led by Executive Director, Mr Mick Symons. The division has administration 42 full-time staff and a budget of $4,968,294. It uses overt and covert techniques in investigations and draws Investigations are a major part of the ICAC’s work and on the coercive powers granted to the Commission complement its corruption prevention and education under the ICAC Act. The division has two areas functions. In 2006–07, the ICAC maintained its – investigations, and surveillance and technical. commitment to quality investigations using state-of-the- art technology and improving how investigations are carried out and managed.
32 ICAC Annual Report 2006–2007 To improve investigation effectiveness, the Commission The investigation process sought the assistance of an independent expert to review the structural and operational arrangements. As a result, many of the independent expert’s When allegations are made to the Commission there recommended changes were considered and the is no presumption that the person against whom following were adopted by the Commission: an allegation has been made has engaged in corrupt conduct. It is the Commission’s role to find out what changing the title of the Division from the Strategic has occurred — on the basis of evidence — and then Operations Division to the Investigation Division to decide whether any person’s conduct amounts to better describe activities corrupt conduct as defined in the ICAC Act. a change to the reporting structure within the Once the Commission determines to investigate a Investigation Division to provide more efficient matter, it is overseen by the Strategic Investigation allocation of resources for investigations. Group (SIG). The SIG provides strategic direction and At the end of 2006–07 a few recommendations advice for all investigations and is comprised of the remained under review and will be considered during Commissioner, the Deputy Commissioner, and the 2007–08. Executive Directors of the Legal, Investigation, and the Corruption Prevention, Education and Research Other improvements in investigative techniques and Divisions. investigation administration included: Investigations are diverse in character and can development of a risk assessment program for range from simple to complex, and embrace past to search warrants, controlled operations and current activities. They can involve field surveillance, surveillance activities. By identifying the risks, the following paper trails, and using listening devices and investigation teams can develop mitigation strategies telephone intercepts, as well as the execution of search for high risk areas warrants and interviews. Strategies and techniques continued roll-out of the three-year surveillance are determined case-by-case and, when appropriate, equipment purchasing program compulsory examinations and public inquiries are undertaken to further the investigative process and reviewing and updating 10 procedures in the expose corrupt conduct. Investigations Operations Manual and creating three new procedures to reflect legislative and For most Commission investigations multidisciplinary operational changes teams are formed. The teams are comprised of reviewing the classification of investigations specialists from the Investigation Division, such as from three categories (preliminary enquiries, investigators and intelligence and financial analysts, along category 1 investigations and category 2 with lawyers from the Legal Division, and a corruption investigations) down to two (preliminary prevention officer from the Corruption Prevention, investigations and investigations) to streamline Education and Research Division. The teams are formed supervision of matters and ensure more efficient early in the investigation and meet regularly to discuss allocation of resources progress, tactics and emerging issues. reviewing the investigation oversight committee The use of statutory powers, for example search which resulted in the name changing from the warrants and listening devices, requires sufficient Investigation Management Group to the Strategic grounds and appropriate authority. Applications for the Investigation Group to better reflect its role and exercise of these powers are drafted by investigators charter. and submitted to the lawyer on the team for review. The application is then submitted to the Executive Director, Legal for final approval to make sure it meets all regulatory and evidentiary requirements before being submitted to the appropriate authorities.
Chapter 3: Investigating corruption 33 When the Commission determines it is in the public recommendations that the advice of the Director interest to do so, it may take evidence from witnesses of Public Prosecutions be obtained regarding in a compulsory examination (i.e. a hearing held in prosecution of persons private) or in a public inquiry (i.e. a hearing held in recommendations that consideration be given to public). The Commission may decide to hold part of the taking of disciplinary action a public inquiry in private if doing so is in the public interest. The Commissioner presiding at a public inquiry recommendations and advice to improve systems, may also choose to make suppression orders in respect procedures and practices to minimise opportunities of particular evidence heard, such as a person’s name or for the conduct to occur again. home address. It is also important to recognise that, in some cases, a The Commission can compel a witness to answer successful investigation can show that a person has not questions and/or produce documents or other things engaged in corrupt conduct. This is particularly relevant when summoned to a compulsory examination or when a matter has been the subject of significant public public inquiry, regardless of whether the answers or exposure and interest. production will tend to incriminate them. If a witness objects to answering a question or producing a document or item, he or she must still answer the Develop strategic alliances to question or produce the document or item. However, optimise investigative outcomes neither the answer nor the item produced is admissible as evidence against the witness in any subsequent criminal, civil or disciplinary proceedings, other than for As part of their work in improving investigative an offence under the ICAC Act. processes and knowledge, ICAC staff work cooperatively with other agencies and participate in a The success of a Commission investigation is measured range of committees, such as the: in several ways, for example: Inter-Agency Technical Committee — this is number of findings of corrupt conduct a forum for intercepting agencies to foster
Chief Investigator, Mr Robert Lang, (standing) giving an operational briefing.
34 ICAC Annual Report 2006–2007 commonality in delivery standards and monitoring Investigations in 2006–07 centres for telecommunications interception. Interception Consultative Committee — the Table 8 shows investigations commenced during agency coordinator uses this committee to 2006–07 and the source of each matter, compared to consult with the agencies under section 7A of the the previous year. Telecommunications Act 1997. Law Enforcement Advisory Committee Investigations in 2006–07 mostly arose from either — this is a forum for consultation between the section 10 complaints or section 11 reports. This is communications industry and law enforcement consistent with the previous year. Two investigations and national security agencies, and includes were commenced2005–06 on the ICAC’s own 2006-07 initiative under representatives from the Department of section 20 of the ICAC Act. Communications, Information Technology and the During 2006–07, the Commission commenced, but did Arts, and the Attorney General’s Department. not finalise 28 investigations. Of these, 12 derived from NSW Digital Evidence Group — includes all major section 10 complaints,1 12 from section 11 reports and law enforcement agencies operating in NSW and four from other sources of information. meets regularly to discuss issues related to the acquisition, storage and management of digital Figure 11 shows the investigations commenced in evidence obtained by computer forensics and the period by sector. Local government was the most analysis. investigated sector in 2006–07. This result is different from 2005–06 when custodial services was the most Special Networks Committee — a forum for investigated sector. intercepting agencies to discuss telecommunications interception capability projects and related contractual issues.
Table 8: Source of investigations commenced
2005–06 % 2006–07 % Section 11 reports (from public sector agencies) 25 45.5 31 42.5 Section 10 complaints (from the public) 15 27.3 28 38.4 Protected disclosure 5 9.1 6 8.2 Dissemination 8 14.5 4 5.5 Section 20 – own initiative 2 3.6 2 2.7 Information 0 0 2 2.7 Intelligence 0 0 0 0.0 Totals 55 100.0 73 100.0
1 Statutory reporting measure under section 76(2)(ba)(ii)
Chapter 3: Investigating corruption 35 Figure 11: Number of investigations commenced in 2006–07 by sector
Use of statutory powers
The Commission has a range of significant powers under the ICAC Act to gather information. It can require a person or organisation to produce documents and require a public authority or official to provide a statement of information. ICAC officers can, with written authority, enter premises and inspect and copy documents. The use of statutory powers is important in obtaining evidence to establish whether or not corrupt conduct has occurred.
Table 9 shows the statutory powers used by the Commission in 2006–07 compared to the two previous years.
Case Study 9 highlights how statutory powers are used to investigate matters.
36 ICAC Annual Report 2006–2007 Table 9: Exercise of statutory powers
Power 2004–05 2005–06 2006–07 Summonses to give evidence or produce documents or both at a compulsory 240 123 116 examination or public inquiry (section 35 of the ICAC Act) Warrant for the arrest of a witness (section 36) 1 0 0 Order for a prisoner to appear before the ICAC (section 39) 0 3 0 Search warrant (section 40)* 11 21 20 Notice for public authority/official to produce a statement of information 11 7 37 (section 21) Notice requiring production of documents (section 22) 378 242 383 Notice authorising ICAC officer(s) to enter premises occupied by public 5 6 6 authority/official and inspect any document or thing and copy any document (section 23) Listening device warrant (subject to the Listening Devices Act 1984) 103 13 52 Telecommunications interception warrant (subject to the Telecommunications 56 17 33 (Interception) Act 1979) Controlled operation authorised (subject to the Law Enforcement (Controlled 3 2 7 Operations) Act 1997) Acquisition and use of assumed identities (subject to the Law Enforcement and 7 5 5 National Security (Assumed Identities ) Act 1998 and the Crimes Act 1914 (Cwlth))
* All search warrants were issued by authorised officers. No search warrants were issued by the ICAC Commissioner during 2006–07.
Note: The ICAC’s accountability for the use of statutory powers is detailed in Chapter 5 of this report.
CASE STUDY 9
Taken for a ride
The ICAC received information that a Registry Services Manager at the Botany Roads and Traffic Authority (RTA) registry and others had improperly helped driver licence applicants in the practical test. However, how this was achieved was not readily apparent.
To find out, the ICAC conducted a compulsory examination of a driving instructor who had earlier admitted his involvement in the scheme. In his evidence he explained that the registry manager had given a restaurant owner a confidential RTA document containing a detailed description of one of the practical driving courses used at the Botany Registry. The restaurant owner then passed on the document to the driving instructor so he could take clients on a dummy run immediately before the driving test in the restaurant owner’s car. He was, however, unable to remember how many clients he helped in this way.
To get the information, the ICAC issued a section 22 notice on the RTA requiring it to produce all records on driving tests at the Botany Registry using a car registered to the restaurant owner. Analysis of these revealed that nearly all applicants using the restaurant owner’s car had been allocated the same course for their test.
When shown these records at a public inquiry in March 2007, the manager admitted that, in return for monetary payment, he had allocated applicants to the course detailed in the document given to the restaurant owner.
The ICAC subsequently found that the manager, driving instructor and restaurant owner had engaged in corrupt conduct. The report of the investigation will be issued in September 2007.
Chapter 3: Investigating corruption 37 Compulsory examinations and public inquiries
The ICAC may take evidence in compulsory examinations or public inquiries.
In 2006–07 the ICAC conducted 49 compulsory examinations over 29 days and conducted four public inquiries over 24 days.
Operation Quilla concerned allegations of corrupt conduct involving the defrauding of the Roads and Traffic Authority (RTA) in relation to payments for the provision of traffic tidal flow services and the alleged defrauding of the RTA and RailCorp in relation to payments for traffic management services during rail ICAC Commissioner, Jerrold Cripps, presided over four public inquiries in 2006–07. shutdowns.
The Commission made findings of corrupt conduct against two persons and stated that it was of the opinion that the advice of the Director of Public 27 March 2007. A report on this investigation will be Prosecutions (DPP) should be obtained in relation to published in the next reporting period. their prosecution for various criminal offences. The Operation Pelion concerned an investigation into an Commission also made 30 corruption prevention recommendations to the RTA and RailCorp. allegation that the then team leader of compliance services at Paramatta City Council corruptly solicited Operation Persis concerned the conduct of a RailCorp and received cash payments and sexual services from airconditioning maintenance engineer and his receipt brothel owners and prostitutes in return for not taking of money from two contractors between mid-1999 action on behalf of Parramatta City Council to prevent and November 2005. During that period the RailCorp unauthorised use of premises for prostitution. employee received over $710,000 from businesses controlled by the two RailCorp contractors. The Commission’s public inquiry in this matter ended on 15 May 2007. A report on the investigation will be The Commission made findings of corrupt conduct published in the next reporting period. against the RailCorp employee and the two contractors and stated that it was of the opinion that the advice The time interval between the completion of each of the DPP should be obtained with respect to their public inquiry conducted during the year and the prosecution and the prosecution of one other, for furnishing of the relevant report is shown in various criminal offences. Appendix 2, Table 35. 2
The Commission also made 27 corruption prevention During 2006–07, the Commission published transcripts recommendations. of all public inquiries on the ICAC website. This makes Operation Sirona concerned the conduct of the the evidence-taking process more transparent and registry services manager at the Botany Motor Registry accessible, particularly for members of the public who of the RTA and others in relation to the fraudulent cannot attend public inquiries. issuing of RTA driver licences. The Commission also investigated an allegation that an attempt had been When deciding to hold compulsory examinations made to procure an RTA officer’s services to act and/or public inquiries, the Commission considers a dishonestly by removing demerit points recorded range of factors to determine whether it is in the public against a licence holder. interest. Criteria for determining whether to conduct a compulsory examination in preference to a public The Commission’s public inquiry commenced on inquiry or whether any part of a public inquiry should Monday, 24 March 2007 and concluded on Thursday, be conducted in private may include:
2 Statutory reporting requirement under section 76(2)(ba)(vi) of the ICAC Act.
38 ICAC Annual Report 2006–2007 maintaining the integrity of the investigation (it public exposure will raise public awareness about may be prejudicial to the investigation to publicly serious corruption or systemic issues divulge the fact that the ICAC is conducting an public exposure will be an important deterrent to investigation, for example, by identifying witnesses similar corrupt conduct by others in the future or making known the extent of evidence obtained) public exposure is likely to encourage others to protecting the reputations of people implicated in come forward with information relevant to the untested or unverified evidence investigation obtaining information to determine whether further public exposure of failed or inadequate systems investigation is required is necessary to encourage public agencies to the need to protect the identity of a witness or an actively engage in reform and/or establish public informant understanding of why change is necessary section18(2) of the ICAC Act which requires that the desirability of enhancing public confidence when a witness to an ICAC investigation may in ICAC’s operations by demonstrating the also be undergoing a trial, that person’s right to transparency and public accountability with which it a fair trial is not prejudiced by a public inquiry. conducts its investigations. This means that the ICAC must ensure that, as far as practicable and necessary, the investigation is conducted in private during the proceedings Investigation reports any application made by, or on behalf of, those appearing before the ICAC that it is in the public The ICAC is required to publish reports on any matter interest for the evidence to be taken in private that is the subject of a public inquiry, or matters section 31(2) of the ICAC Act which provides that referred by both houses of parliament, and forward the ICAC may decide to hear closing submissions in these to the Presiding Officer of each house for tabling. private. Each officer has the discretion to make ICAC reports When determining whether to conduct a public inquiry, public immediately on presentation. section 31 of the ICAC Act requires the Commission While public inquiries must by law result in a report to consider: to parliament, this requirement does not apply the benefit of exposing corrupt conduct to the public to outcomes from compulsory examinations. The the seriousness of the allegation or complaint being Commission may prepare a report to the relevant investigated minister under section 14(2) of the ICAC Act in relation to information received in investigating how a any risk of undue prejudice to a person’s reputation, public authority has exercised its functions. including prejudice that might arise from not holding an inquiry In 2006–07, the ICAC submitted five investigation whether the public interest in exposing the matter reports to parliament and made one report to the is outweighed by the public interest in preserving Minister for Local Government under section 14(2) of the privacy of the people concerned. the ICAC Act. Other criteria for determining to hold a public inquiry may include:
serious or systemic corrupt conduct is likely to be established it is in the public interest to expose widely any corrupt conduct or systems failures the allegations are already in the public domain and a public inquiry would provide a transparent mechanism for public officials and others to be publicly accountable for their actions public exposure of issues is likely to provide those subject to false accusations or innuendo an opportunity to clear their names
Chapter 3: Investigating corruption 39 Table 10: Reports tabled in Parliament 2006–07
Date Name of report 20/09/06 Report on investigation into the case management and administration of community service orders (Operation Cadmus) 26/10/06 Report on investigation into sale of surplus public housing properties (Operation Aztec) 21/12/06 Report on investigation into defrauding the RTA and RailCorp in relation to provision of traffic management services (Operation Quilla) 01/03/07 Report on an investigation and systems review of corruption risks associated with HSC take-home assessment tasks (Operation Bligh) 18/06/07 Report on an investigation into corrupt conduct associated with RailCorp (Operation Persis)
Table 11: Reports made under section 14(2) of the ICAC Act
Date Name of report 07/08/06 Report to the Minister for Local Government under section 14(2) of the Independent Commission Against Corruption Act 1988 into the conduct of two Burwood councillors
Investigation outcomes Findings of corrupt conduct and prosecution/disciplinary action The ICAC is a fact finding and investigative body In 2006–07 the ICAC made findings of corrupt conduct that can make findings of corrupt conduct against against 17 people. public officials. It is not a court or disciplinary tribunal and does not conduct prosecutions or Although the Commission does not have a direct role disciplinary proceedings as a consequence of any in prosecutions, it does refer briefs of evidence to the of its investigations. However, there are three areas Director of Public Prosecutions (DPP) for consideration or activities that best reflect the outcomes arising of prosecution action. The DPP then advises the ICAC from Commission investigations: findings of corrupt whether or not prosecution proceedings are warranted. conduct, prosecution/disciplinary action, and corruption In 2006–07 the Commission recommended that the prevention recommendations and advice. advice of the DPP be sought on the prosecution of 16 people for various criminal offences. Appendix 3 (Prosecutions and disciplinary actions in 2006–07 arising from ICAC investigations) provides further details on the progress of prosecutions resulting from Commission investigations.
Case Study 10 highlights prosecution outcomes from an ICAC investigation.
The relevant public employer is responsible for taking disciplinary action or terminating the employment of staff members about whom the ICAC has made findings of corrupt conduct. In 2006–07, the ICAC recommended that consideration be given to the taking of disciplinary action against three public sector employees as a result of Commission investigations.
40 ICAC Annual Report 2006–2007 CASE STUDY 10
Obtaining false building licences
In December 2005 the ICAC published a report on its investigation into activities associated with obtaining contractor licences for residential building and building trade work (Operation Ambrosia).
The ICAC made findings of corrupt conduct against 36 individuals and stated that it was of the opinion that consideration should be given to obtaining the advice of the Director of Public Prosecutions (DPP) for the prosecution of each of those persons for various criminal offences.
The ICAC found that Mr Raymond Khalifeh obtained a TAFE diploma and transcript of academic record which he knew to be false and which he submitted to the Office of Fair Trading in 1999 in support of his application for a building licence. He was also involved in selling TAFE diplomas which he knew to be false to two other persons for $25,000 each. Of this money he paid $40,000 to the person from whom he obtained the diplomas and retained $10,000 for himself.
As well as making a finding of corrupt conduct against Mr Khalifeh, the ICAC was of the opinion that advice be obtained from the DPP with respect to prosecuting Mr Khalifeh for a number of criminal offences.
Briefs of evidence were prepared and submitted to the DPP.
The DPP subsequently advised that there was sufficient admissible evidence to proceed with prosecuting Mr Khalifeh for three offences under section 178BA of the Crimes Act 1900 (obtaining valuable thing by deception) and five offences under section 87 of the ICAC Act (giving false or misleading evidence).
On 27 July 2006 Mr Khalifeh was convicted of all offences and sentenced to 12 months imprisonment with nine months non-parole period in relation to the section 87 offences and 300 hours of community service in relation to the section 178BA offences.
Corruption prevention For investigations that progress to a public report, recommendations and advice corruption prevention officers outline the prevention and corruption risk issues and make recommendations to deal with the gaps and deficiencies. In 2006–07, the The Commission places great importance on ensuring Commission issued six public reports containing 113 that lessons are learnt from investigations in respect of corruption prevention recommendations. improving systems, policies and procedures. Corruption prevention officers conduct a comprehensive review of Case Study 11 concerns a major investigation the systems, policies, procedures and work practices of undertaken by the Commission which was categorised the agency at the centre of a Commission investigation. by significant system and procedural weaknesses and The objective of the review is to identify weaknesses resulted in a public report containing 27 corruption and gaps to reduce opportunities for corrupt conduct. prevention recommendations. Even when an investigation does not progress to Further information on corruption prevention a public inquiry, the Commission may still provide work on investigations, including follow-up on the prevention advice to the agency concerned (see Case implementation of recommendations arising from Study 12 on page 47). investigations, is outlined on pages 47–50.
Chapter 3: Investigating corruption 41 CASE STUDY 11
Systems and procedures off the rails
In February 2005, RailCorp referred an allegation to the Commission under section 11 of the ICAC Act, which obliges the principal officer of a public authority to report to the Commission any matters that they reasonably suspect may concern corrupt conduct. The allegation was that a RailCorp employee was improperly favouring certain businesses carrying out RailCorp maintenance work. Independently, the Commission received an anonymous complaint in August 2005 that the same employee was both associated with businesses carrying out airconditioning maintenance work and profiting from this work. The employee was primarily involved in managing airconditioning maintenance work in Sydney CBD train stations, most of which was done by contractors. The Commission’s investigation established that businesses directly associated with the RailCorp employee had received more than $710,000 in payments for maintenance work. The payments represented pecuniary conflict of interests for the employee. The Commission also identified that he held further non-pecuniary conflicts of interest. All these conflicts of interest were undeclared, as was the secondary employment of managing his business interests, and the financial benefits he received. The Commission made corrupt conduct findings against the employee in relation to his receipt of payments, failure to make declarations concerning his business interests, and his recommendations that one of the contractors in question be awarded additional work and have its contract extended. Corrupt conduct findings were also made against two contractors. The Commission sought the advice of the Director of Public Prosecutions about proceeding against all three for offences under the Crimes Act 1900 and the employee and his son for offences under the ICAC Act. The Commission identified a number of factors which allowed the corrupt conduct to go undetected for six years. These included a work environment where the employee enjoyed high discretion combined with low accountability and which was also characterised by inadequate cost and performance monitoring, systemic failures in record keeping, and poor policies and procedures. Weaknesses in RailCorp’s handling of both conflict of interests and secondary employment were also identified. A total of 27 corruption prevention recommendations were made to RailCorp.
42 ICAC Annual Report 2006–2007 CHAPTER 4: PREVENTING CORRUPTION
213 4 5 6 7 8 KRA 2: PREVENTING CORRUPTION n Overview
The objectives for KRA 2 are: n Continuous improvement of prevention practices and knowledge n provide a range of targeted strategies and projects to develop the public sector’s n Strategies and projects to resist and capacity to resist and appropriately respond respond to corruption to corruption n Corruption prevention guidance and advice n provide guidance and advice to the NSW n Promoting awareness and confidence in public sector on issues that may lead to reporting corruption corrupt conduct if unchecked n improve community confidence in reporting corruption.
Overview
The Corruption Prevention, Education and Research Division (CPER) carries out the prevention and education functions of the Commission outlined in section 13 of the ICAC Act. In summary, these are to:
examine public sector procedures and systems and recommend revision where they are conducive to corruption cooperate with public authorities and public officials to prevent corruption advise public authorities on how to reduce corrupt conduct
educate and inform public authorities and the Ms Linda Waugh, Executive Director, Corruption Prevention, community on corruption and its prevention Education and Research Division. enlist public support in combating corrupt conduct.
The prevention work of the division is carried out During 2006–07 the CPER Division responded to through multiple activities: 276 advice requests, provided prevention advice in research projects to inform the development of respect of 49 complaints or reports alleging corrupt other projects and activities conduct, conducted two regional visits, delivered 70 prevention advice projects and publications which training courses/presentations, made 113 corruption guide agencies on how to enhance their systems, prevention recommendations in investigation reports, policies and procedures and produced six research or prevention advice the provision of advice services to agencies publications. and members of the public with queries about preventing corruption The division has 24 full-time staff and a budget of $2,625,507. It is led by Executive Director, Ms Linda the delivery of education and training programs to Waugh, who is supported by a senior management raise awareness and understanding of corruption team comprised of the Deputy Director, Ms Lynn issues and how to prevent corrupt conduct from Atkinson and several other senior officers. occurring.
44 ICAC Annual Report 2006–2007 Continuous improvement $1 million, $585,000 was contributed by the Australian Research Council and the remainder by industry of prevention practices and partners. knowledge The project involves more than 10 integrity institutions as industry partners, including the ICAC, in the first This financial year the ICAC completed a project national study of internal witness management. The started in 2005–06 to revise and further develop the objectives are to compare organisational experiences Commission’s corruption prevention policy and policy under varying public interest disclosure regimes and framework. The project involved a comprehensive identify best practice responses to whistleblowing. review of the literature on misconduct, corruption and prevention, and a detailed analysis of the ICAC’s More than 7,000 employees in the four participating public inquiry reports. This information is being used jurisdictions took part in a survey during 2006–07 to by ICAC officers to maintain a current, evidence- gather information on the reporting and management based corruption prevention policy and is contained of wrongdoing. A number of agencies within each in an internal document that is used to induct new jurisdiction also participated in case study research. employees on the principles and theories that underpin The ICAC contributed across a number of research the Commission’s corruption prevention work. components, particularly those relating to research methodology. During 2006–07, the Commission provided 181 training opportunities to CPER staff to improve their The project will continue in 2007–08 and is expected knowledge and expertise in prevention and risk to produce a number of publications and resources. management practices, as well as in project and general The first public presentation of results from the research administration areas. will be in October 2007 at the Australian Public Sector Anti-Corruption Conference (www.apsacc.com.au). Also during the reporting period, the policies and procedures manual for the division was reviewed and Profiling the NSW public sector changes and improvements made. The internal advice manual, which provides guidelines to new staff on how to advise external agencies on specific topics, for The ICAC published a research report in 2003 example codes of conduct or procurement, was also examining the functions, risks and corruption resistance reviewed and updated. strategies within the NSW public sector (Profiling the NSW public sector: Functions, risks and corruption resistance strategies). During 2006–07 it replicated Strategies and projects to resist this research, revising and broadening the survey and respond to corruption instruments from the original project. In the first half of 2007, surveys were mailed to over 500 organisations Research projects and to a random sample of over 1,000 staff from a subset of these agencies, which included local councils and local Aboriginal land councils for the first time. During 2006–07, the division worked on two major The Commission is currently analysing the survey research projects which relate to the objective results and will publish the findings in 2007–08. of resisting and responding to corruption: the collaborative ‘Whistling While They Work’ project and a Corruption risks in the planning process project on profiling the NSW public sector. In addition, the Commission reviewed 187 submissions made in Each year the Commission receives many complaints response to an ICAC discussion paper on corruption and reports that relate to NSW development approval risks in the NSW development approval process. processes. In December 2005, the Commission undertook to further explore this issue by publishing a ‘Whistling While They Work’ discussion paper, Corruption risks in the NSW development approval processes, based on research and examination The ‘Whistling While They Work’ project is a three- of ICAC information holdings and relevant literature. year (2005 to 2007) national research project led by Individuals and organisations were invited to make Griffith University. Of the total project funding of over submissions on various aspects of the paper.
Chapter 4: Preventing corruption 45 During 2006–07, the Commission reviewed the 187 The key audiences for training during the year were submissions received. Many commented on such public sector managers and supervisors as well as issues as the role of councillors in developing planning specialists, such as internal investigators and protected instruments and determining development applications, disclosures coordinators. In terms of subject matter, the possibility of ‘regulatory capture’ of council officers, the three most frequently delivered courses in 2006–07 and the possibility that use of consultants may cause were Corruption Prevention for Managers, the Fact- conflicts of interest. Finder workshop and the Protected Disclosures Train-the-Trainer course. A full list of training courses After considering the submissions, the ICAC delivered in 2006–07 appears in Appendix 13. commenced preparation of a position paper which will contain recommendations to reduce corruption risks in development approval processes. The paper will be published in September 2007.
Training resource development, delivery and presentations
Training
In 2006–07, the ICAC continued to develop its training strategy for public sector employees. The Commission develops training services in response to the needs of public sector agencies on topics related to corruption Crew on the set for the filming of the ICAC training DVD. prevention and topical corruption-related issues.
The full range of Commission training services now includes: Training DVD
delivery of training modules by Commission staff as To trigger discussion on how to identify and respond requested by agencies, and as part of the Rural and to corrupt conduct, a training DVD of 10 short stories Regional Outreach Program that explore topics such as conflicts of interest, gifts and development of training modules for delivery by benefits, and misuse of public resources was produced in 2006–07. Designed to complement a range of agency training staff ICAC training modules, the DVD will enhance training development and delivery of train-the-trainer by catering for diverse learning styles and engaging workshops to equip agency staff to deliver training participants in resolving issues concerning the detection modules developed by the Commission. and management of corruption.
Table 12: Key performance indicators for training activities in 2006–07
2006–07 2007–08 Actual Target* Number of training requests 42 n/a Number of training sessions delivered 39 40 Number of speaking requests received 37 n/a Number of speaking presentations delivered 31 30
* For measures which reflect incoming work or activity targets are not set, and not applicable, (n/a) appears in the target column.
46 ICAC Annual Report 2006–2007 anti-corruption. This successful and internationally recognised course is for middle and senior managers from public sector agencies in Australia and around the world. The 2006 course was held over two weeks in October and November in Canberra and Sydney.
Each year the ICAC offers a limited number of scholarships for the course to NSW public sector staff. Ten scholarships were granted in 2006, including four to staff working in rural and regional NSW.
Training for local Aboriginal land councils Delivery of the university training package. Corruption prevention officers have been conducting The universities toolkit project workshops with local Aboriginal land councils since late 2003 as part of the ICAC’s twice yearly Rural and Regional Outreach Program. In 2005–06, a flexible, In September 2006, the ICAC released Managing the risk of corruption – A training package for New South eight-module package was developed and delivered Wales public universities. Intended to support both to a number of local Aboriginal land councils during academic senior managers and senior administrative the Commission’s outreach program. This work staff, the package was designed for in-house delivery continued in 2006–07 when representatives from 21 by university training staff. It was piloted with the local Aboriginal land councils attended Commission assistance of the University of Wollongong, Macquarie workshops. University and the University of Western Sydney.
Australian National University/ICAC Corruption prevention work on executive program investigations
For the past nine years the ICAC has worked in A corruption prevention officer works on the partnership with the Australian National University investigation team for all major investigations. to deliver a postgraduate course on corruption and The officer’s role is to develop an understanding of
CASE STUDY 12
Prevention better than cure
The Commission received a report under section 11 of the ICAC Act from a NSW statutory board about possible breaches of the board’s code of conduct by a senior employee. It was alleged that the officer had, among other things, provided confidential information about an individual in receipt of the board’s services to a private firm of solicitors.
After a preliminary investigation the Commission decided to discontinue the investigation in the absence of evidence of corrupt conduct. However, in the course of the Commission’s enquiries it had become apparent that work practices in the relevant operational area of the organisation could expose the board to the risk of corrupt conduct. Staff of the Commission’s CPER Division reviewed the board’s policies, procedures and practices and prepared a report with recommendations intended to address the identified risks. During the period of the investigation the board began a comprehensive management review and restructure and was able to incorporate the Commission’s corruption prevention recommendations into a plan to implement these reforms.
Chapter 4: Preventing corruption 47 environments which may be conducive to corrupt Operation Bligh was relatively unusual in that findings conduct or in which the corrupt conduct has occurred. of corrupt conduct were not made. However, the The officer identifies poorly managed corruption risk Commission identified deficiencies in policies, areas and activities by reviewing the agency’s systems, procedures and practices which could potentially policies, procedures and work practices. As shown expose the agency to corrupt conduct in the future. In in Case Study 12, even when investigations do not addition to the recommendation to the Minister, there progress to a public report, the Commission may still were 14 recommendations to the Board of Studies provide prevention advice and/or recommendations to NSW and five to the Department of Education and the agency concerned. Training (see Case Study 13). On investigations that progress to a public report, RailCorp was the affected agency in two of the six the corruption prevention officer is responsible for investigations completed this year. A total of 41 preparing the corruption prevention chapter(s) and corruption prevention recommendations were directed developing recommendations for changes to practices to RailCorp in 2006–07. Operation Persis, referred to and systems to help prevent future corruption. In in Case Study 11, was one of those investigations. 2006–07, the Commission issued six public reports The other was Operation Quilla (see Case Study 14). which included a total of 113 corruption prevention The corrupt conduct in this latter investigation also recommendations.3 Of these, 112 were directed to affected the Roads and Traffic Authority. different NSW public sector agencies and one to the Minister for Education and Training in respect of an investigation which concerned allegations of cheating in the Higher School Certificate (Operation Bligh).
CASE STUDY 13
Take-home tasks a risk
A well-publicised report on the corruption risks associated with the NSW Higher School Certificate (HSC) marked the culmination of a lengthy investigation which began in June 2005 when the Board of Studies NSW reported allegations that some HSC students may have received improper assistance from tutors in preparing take-home assessment tasks.
In particular, the allegations were that tutors at Acclaim Education, a private tutoring business, had written major works submitted by a number of students enrolled in HSC English Extension 2.
The ICAC’s investigation sought to determine the type and extent of assistance that Acclaim Education staff gave to students preparing assignments away from the classroom. Because the allegations implied that systemic weaknesses might exist, the Commission’s corruption prevention staff also reviewed and analysed the relevant policies, procedures and practices associated with the administration of the HSC. The investigation also involved the Commission surveying 42 school principals to examine how schools manage authentication of take-home assessment tasks.
The Commission found that private tutors employed at Acclaim Education had given some students varying degrees of assistance, for example rewriting paragraphs, providing drafts for consideration, and adjusting story lines.
While there was insufficient evidence for a finding of corrupt conduct, the investigation raised serious questions on what constitutes a student’s own work, how the Board of Studies, secondary schools, and HSC students might develop a common understanding of the concept, and how inappropriate external assistance to students could be addressed.
The Commission identified several areas of corruption risk, including risks in recognising and dealing with cheating and malpractice.
3 These recommendations appear in five reports prepared under section 74 of the ICAC Act, and one report prepared under section 14(2) of the ICAC Act.
48 ICAC Annual Report 2006–2007 CASE STUDY 14
A friend indeed
Operation Quilla exposed how some of the most ordinary features of Sydney’s transport system were corruptly manipulated by an RTA manager.
The corrupt conduct began in 2002 when the manager failed to disclose, when assessing tenders for management of tidal (traffic) flow sites in Sydney, that one of the tenderers was a friend. This was in breach of the RTA’s policies concerning conflicts of interest. Over the next three years, during which the friend was an RTA contractor, he and the manager worked in concert to obtain over $300,000 from the organisation. This scheme involved the submission of invoices for work which had not been performed and their approval by the manager.
In early 2004, the two commenced a more audacious scheme, this time involving corruption by the manager in his capacity as the liaison officer for provision of RTA transport services to RailCorp during rail shutdowns. The manager told RailCorp that the RTA had engaged his friend’s company as a service provider. He further advised that his friend would invoice RailCorp directly for work performed — an arrangement that, although in contravention of RailCorp procurement policies, went ahead without any written documentation on their part.
In fact, the friend performed no work at all in regard to rail shutdowns. Instead the manager arranged for the RTA to complete and pay for RailCorp work, concealing the costs by charging them to incorrect RTA cost codes. Together they obtained $257,000 from RailCorp.
As a result of corruption prevention reviews and analyses, the ICAC made 16 corruption prevention recommendations to the RTA and 14 to RailCorp. Where RailCorp was concerned, the recommendations were directed at addressing multiple system failures that had allowed poor practices to develop and continue unchecked, the cumulative effect of which had been to create a very loose operating environment conducive to corruption.
In 2006–07, only one completed investigation directly Outstanding matters were addressed in the four concerned local government. The Commission made corruption prevention recommendations made in the two recommendations to Burwood Council in its public report. report under section 14(2) of the ICAC Act concerning council’s overseas travel policy and the disclosure The Department of Corrective Services was the of non-pecuniary conflicts of interest. Three further affected agency in Operation Cadmus, which concerned recommendations were directed to the Department corrupt conduct in the management of community of Local Government and related to the disclosure and service orders (see Case Study 15). management of pecuniary interests.
Operation Aztec concerned the disposal of surplus public housing by the Department of Housing. The ICAC examined weaknesses in the process by which the department disposed of their surplus properties. Findings of corrupt conduct were made against an officer of the department and two real estate agents. The department worked with the Commission to review its systems and address identified weaknesses.
Chapter 4: Preventing corruption 49 CASE STUDY 15
Nice work if you can avoid it
Management of the community service order scheme by the Department of Corrective Services was investigated in the Commission’s report in September 2006. Community service is a penalty imposed by a court and typically involves the offender working in the community for a non-profit organisation.
Findings of corrupt conduct were made against a departmental officer who helped two offenders avoid community service imposed by the courts, without their non-compliance resulting in a breach of the order. A number of people who supervised offenders working at their agencies under community service orders were also found guilty of corrupt conduct. One was a parish priest who falsified offenders’ timesheets. Another was the secretary of the priest’s local church, where the offenders were meant to undertake their community work, who organised offenders to carry out work for his relatives.
The Commission made 24 corruption prevention recommendations to Corrective Services and, in the wake of the investigation, the department overhauled major elements of the scheme. Some of the key changes made so far include:
revisions to the criteria and guidelines for allocating offenders to agencies, including new processes to identify and manage conflicts of interest revisions to the criteria for deciding whether an agency should be accredited to participate in the scheme introduction of standard induction materials to ensure that both offenders and host agencies understand the scheme’s requirements.
Following up on corruption Corruption prevention guidance prevention recommendations and advice
The Commission requests agencies to which it has Projects and publications made corruption prevention recommendations in reports under section 74 or section 14 of the In 2006–07, the division developed and published three ICAC Act to submit an implementation plan for all corruption prevention guides and brought one initiative recommendations within three months of the report close to completion. being made public. Thereafter, the Commission requests progress reports on implementation at intervals of 12 Lobbying guidelines for local government and 24 months. These reports are published on the ICAC website so members of the community can view how these agencies have responded to the corruption The Commission frequently receives complaints about risks identified by the investigation. improper lobbying practices and biased decision-making in local government. The issue of inappropriate lobbying In 2006–07, the Commission received 13 progress also arose during the Commission’s investigation reports providing updates on the implementation into planning decisions relating to the Orange Grove status of recommendations in previous Commission Centre.4 investigation reports. These reports indicate that 80 per cent of corruption prevention recommendations had been implemented. Further detail is in Appendix 4.
4 ICAC (August, 2005), Report on investigation into planning decisions relating to the Orange Grove Centre.
50 ICAC Annual Report 2006–2007 To provide additional guidance in this area, the resources, conflict between public duty and private Commission published Lobbying local government interests and activities, inappropriate relationships councillors: A guide for councillors, constituents and other between clinicians and suppliers, and corruption in interested parties. This brief publication advises local responding to problems in clinical service delivery. councillors how to manage their dealings with lobbyists Through extensive consultation the ICAC established in a way that is transparent and protects them against that there is a demand for more education and allegations of bias or corrupt conduct. Copies have resources to assist in managing corruption risks in the been distributed to all NSW councils and councillors. public health sector. As a result, the ICAC and the Department of Health have developed a new training Occupational licensing risks package for senior clinical and non-clinical managers. It has three modules: recognising corruption, identifying As a result of several Commission investigations that and managing conflicts of interest, and preventing exposed risks in occupational licensing, the Commission corruption. As part of the development process, the initiated development of a resource to assist NSW ICAC sent copies of the draft training kit to health public sector agencies involved in this activity. Corruption services and other stakeholders for review and risks in occupational licensing and strategies for managing subsequently made changes in response to the many them was published by the Commission in December useful comments received. 2006. The publication considers the common The training package will be formally released in August corruption risks facing agencies involved in licensing 2007, following delivery of a train-the-trainer session people to enter a particular occupation or allowing for key staff from various area health services. them to use a professional title, as well as providing advice on risk management.
Protecting identity information and documents
Protecting identity information and documents: Guidelines for public sector managers was released in December 2006 to help public sector agencies identify corruption risks they may face in managing identity information and documents, such as birth certificates, and to devise appropriate management strategies. Among the risk areas covered are the physical security of materials and equipment used in the production of identity Ms Paula Ware, Senior Project Officer, Training and Development, documents, secure storage and handling of identity conducts training with public officials from the NSW health sector. information, the use of security features in identity documents, and authentication of identity information. The publication sets out processes and systems which Corruption prevention advice can be implemented to minimise risk of improper access and/or release of identity information and services documents. Providing advice is a key role of the CPER Division. Strengthening corruption resistance in the The division provides formal advice to agencies public health sector on matters that come to the Commission through the Assessments Section. These include section The ICAC has been working closely with the 10 complaints, section 11 reports and protected Department of Health and area health services since disclosures. The Commission also gives corruption 2003 on a project to strengthen the corruption prevention advice to public sector employees and the resistance in the NSW public health sector. The project general public in response to queries by telephone, has focused on four main corruption risks: misuse of letter and email.
Chapter 4: Preventing corruption 51 Table 13 gives information on the division’s handling clearance of a backlog of matters and because the of matters that were received from the Assessments division operated with a full complement of staff for Section and required corruption prevention action, most of the year. compared to the previous two years. Case Study 16 illustrates how the division might The average number of days to resolve matters respond to a matter referred from the Assessments declined in 2006–07. This was primarily due to a Section.
Table 13: Corruption prevention advice given in relation to matters referred from the Assessments Section
Corruption prevention advice on matters 2004–05 2005–06 2006–07 Number of matters received 67 50 61 Number of matters closed 101 68 49 Average number of days to resolve matters finalised 102 111 58
CASE STUDY 16
Waste not want not
The ICAC received allegations that road workers from a local council were giving free surplus road materials to favoured residents in violation of council regulations.
The actual situation was that council generally offered waste materials to nearby residents who wanted them, rather than taking the waste to a dump. However, there was no policy to this effect and many residents did not understand that it was accepted practice. As a result, the council’s actions were open to misinterpretation.
In the interest of greater transparency, the council’s general manager asked the Commission for advice on developing a policy to dispose of surplus roadworks waste. The ICAC recommended that council:
develop clear criteria for selecting which residents were eligible to receive waste estimate and record the value of disposing of the waste and the value of the waste to the resident develop a procedure for documenting council approval to dispose of the waste link the policy to the council’s contaminated waste policy develop a procedure for communicating the offer of waste materials to residents record which residents receive the waste develop a procedure to record residents’ agreement and responsibilities, such as sedimentation controls, should they accept waste.
52 ICAC Annual Report 2006–2007 As already stated, the division also responds to When a request for advice is recorded it may fit only prevention advice requests by telephone, letter or one category or it may fit several, for example conflicts email. Table 14 summarises how the division dealt with of interest as well as code of conduct. The table shows advice requests during 2006–07. the number of times each category is ascribed to a matter rather than the number of individual requests Table 15 shows advice requests in writing and by for advice. telephone/email across 19 different categories for 2006–07.
Table 14: Summary of how advice requests were dealt with in 2006–07
Activity 2006–07 Number of advice letters sent in response to advice requests 32 Percentage of written requests responded to within 30 days of request 78% Number of discrete advice responses by telephone/email 244
Table 15: Written/telephone/email advice requests by category 2006–07
Category Written Phone/email Total % requests requests Procurement & disposal 8 47 55 16 Regulatory functions (includes planning & development) 8 42 50 14 General ICAC information 0 46 46 13 Conflicts of interest 7 28 35 10 Miscellaneous 6 27 33 10 Protected disclosures & internal reporting 1 21 22 6 Employment issues & practices 4 16 20 6 Sponsorship 3 13 16 5 Gifts & benefits 3 9 12 3 Code of conduct 2 9 11 3 Confidential information 3 7 10 3 Election issues 1 7 8 2 Corruption prevention planning 2 5 7 2 Misappropriation/misuse of public resources 0 7 7 2 Public/private sector interface 3 4 7 2 Maladministration 0 4 4 1 Fraud 1 2 3 1 Government grants 0 2 2 1 Cash handling 0 0 0 0 Total 52 296 348 100
Chapter 4: Preventing corruption 53 Most advice related to procurement and disposal, Managing conflicts of interest in the public sector – Toolkit regulatory functions and general ICAC information. (jointly published by the ICAC and the Queensland Most requests came through the Commission’s Crime and Misconduct Commission in October telephone advice line. Requests on more complex 2004). The number of requests about procurement matters are generally made and responded to in writing. and disposal, and regulatory functions has remained consistently high. Table 16 shows written, telephone and email advice responses by category for the last three financial years. Case Study 17 highlights a matter where the ICAC gave advice about conflicts of interest. Advice requests concerning conflicts of interest have dwindled progressively since the publication of
Table 16: Written, telephone and email advice responses by category 2004–05 to 2006–07 ^
Risk/risk management area 2004–05 % 2005–06 % 2006–07 % Procurement & disposal 64 14 44 13 55 16 Regulatory functions 46 10 52 16 50 14 General ICAC information 62 13 38 12 46 13 Conflict of interests 69 15 48 15 35 10 Miscellaneous 54 11 20 6 33 10 Protected disclosures & internal reporting 25 5 9 3 22 6 Employment issues & practices 20 4 14 4 20 6 Sponsorship 29 6 17 5 16 5 Gifts & benefits 28 6 14 4 12 3 Code of conduct 12 3 9 3 11 3 Confidential information 5 1 14 4 10 3 Election issues 7 1 2 1 8 2 Corruption prevention planning 8 2 8 2 7 2 Misappropriation/misuse of resources 4 1 10 3 7 2 Public/private sector interface 33 7 12 4 7 2 Maladministration 1 0 6 2 4 1 Fraud 3 1 7 2 3 1 Government grants 4 1 5 2 2 1 Cash handling 0 0 0 0 0 0 Total 474 101* 329 101 * 348 100
^ The table shows the number of times each category is ascribed to a matter rather than the number of individual requests for advice. * Due to rounding, this percentage column totals 101.
54 ICAC Annual Report 2006–2007 CASE STUDY 17
Just the ticket
A rural council alleged that several staff had attended a State of Origin rugby league game in Sydney at the invitation of a company that provided services to council. The benefits included transport, tickets and hospitality.
Council investigated the allegations and found a number of staff had attended the game. Several had bought tickets themselves and did not attend with the company named in the allegation. One staff member was invited to attend by a long-term friend who worked for the company and had asked a council colleague if he wanted to take a spare place. Neither had any involvement in engaging the company for council work. Both stated that in future they would seek permission from their supervisor to attend.
It appeared from the investigation that the company did not intend to influence the staff involved. However, the staff members’ acceptance of hospitality raised the possibility that they might be favourably biased towards the company.
This case highlights the difficulties that can emerge when personal relationships overlap with public duty. Because the individuals were employed by council, and the company provided services to council, they were required to consider the offer of hospitality in an official rather than a personal manner.
Council formally warned the staff about breaches of the code of conduct and accepted their assurance that they would in future adhere to the code. The ICAC also suggested that council inform contractors about their expectations about contractor interaction with council staff.
Promoting awareness and New projects included the first phase of a major confidence in reporting review and upgrade of the Commission’s website and the development of posters and postcards to raise corruption awareness of protected disclosures.
In 2006–07, the Commission conducted its periodic Community attitudes survey community attitudes survey which provides a general indication of community awareness of corruption Since 1993 the ICAC has conducted periodic public issues. The division also continued the flagship Rural surveys to examine community perceptions of and Regional Outreach Program, which promotes corruption, attitudes to reporting corruption, and community awareness and confidence in reporting awareness and perceptions of the ICAC. The latest corruption. survey was conducted in 2006.
Organisation of two major conferences, the inaugural Community attitudes to corruption and the ICAC Australian Public Sector Anti-Corruption Conference (December 2006) presents detailed findings from the and the biennial National Investigation Symposium survey of 502 NSW residents. Overall, the survey progressed during 2006–07. Two issues of the Corruption indicated that attitudes towards corruption and the Matters newspaper were published and Guidelines for ICAC have remained relatively stable. Specific findings Principal Officers was released to promote awareness of include: the ICAC and reporting obligations placed on principal officers by the ICAC Act. 72 per cent of respondents thought that corruption was a problem, the lowest percentage recorded in any survey
Chapter 4: Preventing corruption 55 more than 90 per cent of respondents indicated North Coast Outreach that they are likely or very likely to report serious corruption The ICAC visited the North Coast region over a of the 82 per cent who were aware of the ICAC, two-week period in June 2007, holding courses and/ 93 per cent thought that having the Commission or meeting local and state government officials in was a good thing for the people of NSW. Ballina, Coffs Harbour, Grafton, Kempsey, Mullumbimby, Murwillumbah and Port Macquarie. One hundred and Rural and Regional Outreach six public officials participated in ICAC courses and about 75 secondary school students attended the legal Program studies workshop. There were meetings with local councillors and senior managers from 12 public sector Since 2001 the ICAC has visited rural and regional agencies and a breakfast with community leaders. areas of NSW twice a year to raise awareness of the ICAC’s role and functions and to establish networks in non-metropolitan communities. In 2006–07, the ICAC Inaugural Australian Public visited the New England and North Coast regions. Sector Anti-Corruption Participant evaluations of the visits indicated that both Conference were successful and well received. Planning continued on the inaugural Australian Public New England Outreach Sector Anti-Corruption Conference by the ICAC and partners, the Queensland Crime and Misconduct The ICAC conducted a four-day outreach program in Commission and the Western Australian Corruption November 2006 in the New England towns of Armidale, and Crime Commission. The conference will be held in Glenn Innes, Grafton, Gunnedah, Lismore, Tamworth Sydney from 23 to 26 October 2007. and Walcha. Approximately 100 public officials participated in ICAC courses, about 90 secondary During 2006–07, the Conference Organising school students attended the legal studies workshop, Committee, chaired by the ICAC, designed a program and 40 senior public employees attended the ICAC of presentations and workshops to heighten delegates’ address at the regional coordination management abilities to identify and assess corruption risks and apply group quarterly meeting. The ICAC Commissioner also best practice in anti-corruption management. addressed Tamworth community leaders at a breakfast The committee engaged a professional events event. coordinator and implemented a targeted communication strategy.
6th National Investigations Symposium
This biennial event that targets public officials who conduct fact-finding exercises was first held in 1996. The ICAC organises the symposium in partnership with the NSW Ombudsman and the Institute of Public Administration of Australia (NSW Division).
The 2006 Symposium was a great success with 220 delegates and 42 speakers participating. The evaluation completed by 30 per cent of delegates established that Mr Bill Kokkaris, Senior Project Officer, Education and Public Affairs, a large majority found the symposium useful for their conducts a workshop with HSC students from Kempsey. work and most were interested in attending the 2008 event.
56 ICAC Annual Report 2006–2007 Corruption Matters newspaper broadcast on SBS, 2RES and 2000FM of the Thai version of the radio campaign connected with the ICAC public inquiry into the Roads and Traffic The ICAC’s biannual newspaper disseminates Authority (Sirona). information throughout the public sector about the Commission and its work. Agencies can use Corruption Matters articles in their internal communications to support their own messages about preventing and reporting corruption.
The two issues produced in 2006–07 included regular columns by the NSW Ombudsman and the Department of Local Government.
Guidelines for principal officers reporting allegations to the ICAC
The Commission published ICAC and public sector organisations: Guidelines for principal officersin June 2007. The aim is to help chief executive officers (CEOs) of public sector agencies understand the ICAC’s role and Protected disclosures poster and assist them in fulfilling their obligations under the ICAC postcards Act. The guide outlines the CEOs’ responsibilities to notify the Commission of any allegations of suspected corrupt conduct, how the Commission deals with The ICAC has produced a series of thematically linked complaints, and what an organisation must do when postcards and posters to remind public sector and asked by the Commission to conduct an investigation local government staff to report suspicions of corrupt into a matter reported to the Commission. conduct, maladministration, and serious and substantial The Commission is currently developing a local waste of public money, and to highlight the key government version of this publication. provisions of the Protected Disclosures Act. There are two versions of the postcard — one showing Non-English speaking an office environment and the other an outdoor, manual work environment. Each has a space where staff can background communications write the name of their disclosure officer for future project reference. All NSW public sector agencies were sent a sample postcard pack and advised that they could This project, which commenced in 2003, concluded in customise the artwork, if organising their own printing, stand-alone form in 2006–07 after the Commission by inserting their logo or public disclosure officer’s decided to incorporate project activities into ongoing name. operations. The A2-size posters, which incorporate the same Project achievements over the reporting period images as the postcards, reinforce the corruption included: reporting message. Both posters and postcards are free. translation and printing of the ICAC publication The images and information used in the postcards Providing advice on corruption issues: A guide for and posters were piloted with external agencies and community leaders in Arabic and Chinese, the two most common languages used in NSW after English endorsed by the NSW Ombudsman, the Audit Office and the Department of Local Government. dubbing the ICAC corporate video Some facts about the ICAC in Arabic, Cantonese, Mandarin and Vietnamese
Chapter 4: Preventing corruption 57 Website redevelopment
In February 2007, the ICAC Executive Group approved a project to identify improvements to the existing website and determine the specifications and information architecture for a new site.
The external agency contracted for the project consulted extensively with stakeholders, including ICAC staff, external public sector staff in corruption prevention roles and the general public. Their report responds to the issues raised by stakeholders through direct consultation and an online survey and takes into account the requirements of the NSW Government Website Style Directive.
The ICAC will use the report in 2007–08 to contract the rebuild of the website and guide internal development of new content.
58 ICAC Annual Report 2006–2007 CHAPTER 5: ACCOUNTABILITY
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Chapter 59 KRA 3: ACCOUNTABILITY n Overview
The objectives for KRA 3 are: n Reporting to the Parliamentary Joint Committee and Inspector of the ICAC n provide timely, accurate and relevant reporting to the Inspector of the ICAC and n Business activity compliance and the NSW Parliamentary Joint Committee governance n ensure all business activity complies with n Reporting the work of the ICAC regulatory and standards requirements n report publicly on the work of the Commission.
Overview
The ICAC was created by Parliament to be independent of government. Its jurisdiction extends to all public officials (including members of Parliament, members of the judiciary and the Governor) and those non-public officials whose conduct could adversely affect public officials. The ICAC’s activities are amenable to the judicial review jurisdiction of the NSW Supreme Court but, other than that, the exercise of its discretions and the discharge of its functions are not reviewable.
The ICAC Act confers significant powers and discretion on the ICAC Commissioner and staff. The ICAC is also able to exercise powers under other legislation, such as the Telecommunications (Interception and Access) Act 1979, the Law Enforcement (Controlled Operations) Act 1997, the Law Enforcement and National Security (Assumed Identities) Act 1998 and the Listening Devices Act 1984.
In view of its powers, comprehensive external and The ICAC must meet all legislative requirements. internal accountability frameworks are in place to ensure that the ICAC does not abuse its powers and The ICAC is also externally accountable through: meets all legislative responsibilities. inspection of records of telecommunications interceptions and controlled operations by the External accountability NSW Ombudsman reporting to the NSW Attorney General and the The two main features of the ICAC’s external judge who issued the warrant for the use of each accountability framework are: listening device the Parliamentary Joint Committee on the ICAC application of freedom of information and privacy the Office of the Inspector of the ICAC. laws, with exemption for certain functional matters
60 ICAC Annual Report 2006–2007 accounting to the NSW Treasury and Audit Office Reporting to the Parliamentary for the proper expenditure of funds annual reporting requirements, including those in Joint Committee and Inspector the ICAC Act. of the ICAC
The NSW Supreme Court can review the ICAC’s actions to ensure it properly exercises its functions and Parliamentary Joint Committee on powers. the ICAC Under the ICAC Act, the Commission must provide reasons for its decision to discontinue or not The Parliamentary Joint Committee consists of commence an investigation to complainants and those 11 members of parliament selected from the Legislative required to notify the Commission of possible corrupt Assembly and Legislative Council. The committee in conduct. place for most of 2006–07 was constituted in May 2003 and comprised representatives from the government, The ICAC has also implemented a range of measures opposition parties and the cross benches — the minor to maximise accountability to the community for its parties and independents. Members of that committee day-to-day work. These measures include publishing were: and distributing ICAC investigation reports and posting public inquiry transcripts on the ICAC website. The Hon Kim Yeadon MLA (Chair) The Hon Peter Primrose MLC (Vice-Chair) Internal accountability The Hon Jenny Gardiner MLC Reverend the Hon Fred Nile MLC
In addition, the ICAC has implemented a range of Ms Kristina Keneally MLA internal accountability mechanisms that include: Mr Malcolm Kerr MLA Mr John Mills MLA strict procedural requirements for the exercise of statutory powers Mr Paul Pearce MLA an internal committee, the Strategic Investigation The Hon John Price MLA Group, which oversees major investigations and Mr Anthony Roberts MLA hearings Mr John Turner MLA. the Prevention Management Group, which oversees ICAC corruption prevention, education and Following the 2007 NSW election, a new committee research activities was established on 21 June 2007. the Executive Management Group, which oversees The current committee members are: corporate governance and budgeting and provides overall strategic direction. Mr Frank Terenzini MLA (Chair) Mr David Harris MLA (Vice-Chair) The Hon John Arjaka MLC The Hon Greg Donnelly MLC Reverend the Hon Fred Nile MLC Mr Robert Coombs MLA Ms Jodi McKay MLA Ms Lylea McMahon MLA Mr John O’Dea MLA Mr Rob Stokes MLA Mr John Turner MLA.
Chapter 5: Accountability 61 The committee is responsible for monitoring and investigating and assessing complaints about the reviewing ICAC activities and reports. It can also ICAC or ICAC officers examine trends in corruption but cannot investigate recommending disciplinary action against or particular conduct or reconsider decisions the ICAC criminal prosecution of ICAC officers. has made on individual matters. Mr Graham Kelly is the current Inspector of the ICAC. The committee holds general meetings and briefings with the ICAC, prepares discussion papers, conducts All requests from the Inspector of the ICAC for access hearings on issues where the views of interested parties to records were complied with expeditiously during the are sought, and considers matters raised by other reporting period. members of parliament or members of the public. During 2006–07, the Inspector of the ICAC conducted During 2006–07 there was one public committee two audits and forwarded reports on the outcomes to meeting requiring the attendance of ICAC officers. This the presiding officers of both houses of parliament on was held to review the 2004–05 ICAC annual report. 28 June 2007.
The ICAC also responded to questions on notice on One audit concerned the ICAC’s compliance with one occasion. section 12A of the ICAC Act which requires that the ICAC, as far as practicable, directs its attention to serious and systemic corrupt conduct and takes into Inspector of the ICAC account the responsibility and role of other public authorities and public officials in preventing corrupt The principal functions of the Inspector of the ICAC conduct. are to: A sample of 215 complaints was audited. The Inspector audit the operations of the ICAC for compliance of the ICAC found that the ICAC assessment process with NSW laws complied with the objectives of section 12A for 98 per deal with (by reports and recommendations) cent of these complaints and identified four complaints complaints of abuse of power, impropriety and which he believed exposed some issues relating to the other forms of misconduct by the ICAC or officers objectives. of the ICAC The other audit concerned the ICAC’s compliance with deal with (by reports and recommendations) NSW laws when exercising power to: complaints of conduct amounting to maladministration (including delay in the conduct of obtain a statement of information — section 21 investigations and unreasonable invasions of privacy) obtain documents and other things — section 22 by the ICAC or officers of the ICAC enter public premises and copy documents — assess the effectiveness and appropriateness of section 23 the ICAC procedures relating to the legality or summons a witness to take evidence — section 35 propriety of its activities. require a public authority to report to the ICAC The Inspector has extensive powers that include: where the Commission has referred a matter to it — section 54. investigating any aspect of the ICAC’s operations or any conduct of officers of the ICAC The Inspector of the ICAC found that the audited requiring ICAC officers to supply information or notices and summonses complied with the ICAC Act. produce documents or other things relating to the While there were no substantive issues of concern, ICAC’s operations or conduct of ICAC officers the audit revealed a problem in identifying and locating supporting minutes for some notices and summonses. requiring ICAC officers to answer questions from The ICAC has taken steps to ensure appropriate the Inspector of the ICAC or produce documents records are centrally filed and readily accessible. or other things relating to the ICAC’s operations or the conduct of ICAC officers
62 ICAC Annual Report 2006–2007 Business activity compliance Meetings are held monthly to review ongoing progress reports on corruption prevention, education and and governance research projects.
Internal governance Executive Management Group
The Executive Management Group meets fortnightly The ICAC has an internal committee system to and is responsible for: oversee major operations, programs and projects. Key governance committees are the Strategic Investigation advancing the ICAC’s corporate and strategic Group, the Prevention Management Group and the directions Executive Management Group. reviewing, developing and endorsing ICAC policies The ICAC also has a range of other internal and procedures committees to deal with issues, such as equal overseeing corporate planning and budgeting employment opportunity and occupational health and supporting the ICAC’s commitment to business safety. These committees are discussed in Chapter 6. improvement initiatives and key result areas providing strategic oversight and promoting Strategic Investigation Group organisation-wide ownership of corporate projects ensuring efficient deployment of ICAC resources. This group oversees ICAC investigations and members are the: The group comprises the Commissioner, Deputy Commissioner Commissioner and all Executive Directors. Deputy Commissioner Executive Director, Legal Using statutory powers Executive Director, Investigation The ICAC has extensive powers which are regulated Executive Director, Corruption Prevention, by statute. The statutes set out the type of power it can Education and Research. exercise, the grounds on which it may exercise powers The group meets fortnightly and is advised by the chief and restrictions on how it may exercise powers. investigators responsible for particular investigations. To ensure these powers are exercised appropriately, the The Executive Directors, Legal and Investigation, the ICAC has compiled an operations manual which sets chief investigators and the Manager, Assessments out procedures for the exercise of relevant powers. Section provide regular monthly or fortnightly The manual requires that the reason for the exercise of updates to keep the group informed on progress and a power and its actual exercise must be soundly based developments for each investigation, including progress and recorded. ICAC officers must follow the manual’s with writing investigation reports and preparing procedures both in applying for the use of a particular prosecution briefs for submission to the Director power and in exercising that power. The procedures of Public Prosecutions, and the general progress of also ensure that any legislative requirements are prosecutions arising from ICAC investigations. identified and addressed.
Prevention Management Group For example, the operations manual requires that requests for the issuing of notices under sections This group oversees ICAC corruption prevention, 21 and 22 of the ICAC Act, and for issuing summonses education and research activities. Membership is the under section 35, are by written minute to the same as the Strategic Investigation Group with the issuing Commissioner through the Solicitor to the addition of the Executive Director, Corporate Services. Commission (the Executive Director Legal). The minute must set out the basis for issuing the notice or summons.
Chapter 5: Accountability 63 The Executive Management Group must approve any Accounting for the use of changes to the operations manual which is updated statutory powers regularly to reflect relevant changes to legislation and reviewed every two years. Assumed identities are used by ICAC officers in Applications for listening devices, telecommunications surveillance operations on people of interest in ICAC interception, controlled operations and assumed investigations and to maintain covert arrangements. identities are considered by the lawyer assigned to the investigation and checked thoroughly by the Solicitor to These assumed identities must be reported under the Commission before the application proceeds. the Law Enforcement and National Security (Assumed Identities) Act 1998. In 2006–07, the ICAC acquired five Applications for listening device warrants are new identities, varied an existing identity and revoked considered by judges of the NSW Supreme Court, six identities. who approved all ICAC applications made during the reporting period. An audit of assumed identity records for 2006–07, which is required under section 11 of the Law Applications for telecommunications interception Enforcement and National Security (Assumed Identities) warrants are usually made to members of the Act 1988, showed that the ICAC had complied with all Administrative Appeals Tribunal (Commonwealth), who aspects of the legislation. in 2006–07 approved all ICAC applications. The NSW Ombudsman inspects the ICAC’s records of telecommunications interceptions and controlled operations to ensure compliance with statutory obligations. In 2006–07, the Ombudsman conducted two inspections of the ICAC’s telecommunications interception records and one inspection of the ICAC’s controlled operations records. The Ombudsman found that the records complied with the relevant legislative requirements.
The Executive Director, Legal, Mr Roy Waldon provides final review on all legal processes.
64 ICAC Annual Report 2006–2007 Reporting the work of the ICAC Investigation reports
Section 76 of the ICAC Act requires the ICAC to The ICAC is required to prepare reports on matters report on its operations for each year ending on 30 referred by both houses of the NSW Parliament and June and to forward this report to the presiding officer on matters involving public inquiries. These reports of each house of parliament. are presented to the presiding officer of each house who arranges for tabling in Parliament. Each presiding The section requires that the report includes the officer has the discretion to make ICAC reports public following details: immediately on presentation.
a description of the matters referred to the ICAC Public reports can be produced without conducting a description of the matters investigated by the a public inquiry. In 2006–07, the ICAC presented ICAC five investigation reports to Parliament which were immediately made public. These were, in order of the time interval between the lodging of each release: complaint and the ICAC decision to investigate the complaint Report on investigation into the case management and the number of complaints the ICAC started to administration of community service orders (September investigate but did not finalise 2006) the average time taken to deal with complaints and Investigation into the sale of surplus public housing the actual time taken to investigate any matter on properties (October 2006) which a report is made Report on investigation into defrauding the RTA and the total number of compulsory examinations and RailCorp in relation to provision of traffic management public inquiries conducted services (December 2006) the number of days spent conducting public Report on investigation and systems review of inquiries corruption risks associated with HSC take-home the time interval between the completion of each assessment tasks (March 2007) public inquiry conducted and provision of a report Report on an investigation into corrupt conduct any recommendations for legislative change or associated with RailCorp airconditioning contracts administrative action that the ICAC considers (June 2007). necessary in exercising its functions A report to the Minister for Local Government under the general nature and extent of information that section 14(2) of the ICAC Act concerning the conduct the ICAC has sent to a law enforcement agency of two Burwood Councillors was also released and under the ICAC Act published on the website. the extent to which the ICAC’s investigations have resulted in prosecutions or disciplinary action in that year the number of search warrants issued by authorised officers and the ICAC Commissioner respectively a description of its educational and advisory activities.
These details are included in this report.
In addition to this report, the ICAC also publishes investigation reports and a number of corruption prevention, education and research publications.
Chapter 5: Accountability 65 Corruption prevention publications
The following corruption prevention publications were produced during the reporting period:
Lobbying local government councillors (August 2006) Strengthening the corruption resistance of the NSW public health sector – consultation report (October 2006) Corruption risks in occupational licensing and strategies for managing them (December 2006) Protecting identity information and documents: Guidelines for public sector managers (December 2006) Community attitudes to corruption and the ICAC: Report on the 2006 survey (December 2006) The ICAC and public sector organisations: Guidelines for principal officers (June 2007).
The ICAC also met its target of producing two editions of the Corruption Matters newspaper. This publication is designed to raise awareness in the public sector and the wider community about corruption-related matters.
Each publication is dealt with in more detail in Chapter 4.
66 ICAC Annual Report 2006–2007 CHAPTER 6: OUR ORGANISATION
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Chapter 67 KRA 4: OUR ORGANISATION n Overview
The objectives for KRA 4 are: n Performance results n continue to develop as a learning n A learning organisation organisation that embraces a culture of n Provide a safe, equitable, productive and continuous improvement, excellence and satisfying workplace sharing of knowledge n Be a lead agency in our governance and n provide a safe, equitable, productive and corporate infrastructure satisfying workplace n Monitoring performance and effective n be a lead agency in our governance and resource management corporate infrastructure n monitor our performance to ensure work quality and effective resource management.
Overview enhanced document scanning to include documents seized during investigations reviewed and updated 19 Commission-wide policies The Corporate Services Division provides human reviewed and updated information system security resources, staff development, financial administration, policies and practices to successfully achieve information technology, risk management, and accreditation to the latest ISO/IEC 27001:2005 procurement and office services. International Standards for Information Security The division’s specific aims in providing these services made progress on achieving the Working Together: are to: Public Sector OHS and Injury Management Strategy 2005–2008 performance targets set for the develop our people and continuously improve Commission. services and systems provide a safe and productive workplace develop infrastructure that supports achievement of the Commission’s objectives establish governance structures that manage risks and monitor performance against goals.
The division had 20 full-time staff and a budget of $2,101,423. It is led by Executive Director, Mr Lance Favelle. Performance results
In 2006–07 the ICAC:
recorded 803 staff attendances at internal and external training courses enhanced corporate governance through the review and redevelopment of the code of conduct, and roll-out of the new code to staff Mr Lance Favelle, Executive Director, Corporate Services.
68 ICAC Annual Report 2006–2007 A learning organisation Staffing
At the end of the reporting period, the Commission employed 121 staff, 102 on a permanent basis, 13 on a temporary basis and six staff in the equivalent of SES contract positions. Ninety-five per cent of employees were full-time while 5 per cent were employed part- time. During the reporting period the Commission employed an average of 111.5 full-time equivalent staff, an increase of 6.3 full-time equivalent staff on the The ICAC Executive meets with all staff on a regular basis. previous reporting period. See Table 17.
Table 17: Average staff numbers by division
Division 2003–04 2004–05 2005–06 2006–07 Executive 5.0 4.9 4.0 3.5 Corporate Services 21.5 20.8 18.0 20.4 Corruption Prevention, Education & Research 21.9 22.8 21.8 24.3 Legal 10.7 9.6 9.3 9.7 Investigation 39.8 41.4 40.0 42.2 Assessments 12.4 13.1 11.9 11.4
Assistant commissioners Human resources
With the concurrence of the Commissioner, the NSW Policies and procedures Governor appoints assistant commissioners to assist the ICAC with its inquiries as necessary. During the The ICAC systematically reviews and updates policies reporting period there were no external assistant to ensure compliance with legislative requirements commissioners appointed for the 49 compulsory and government procedures. All policy changes are examinations and four public inquiries conducted. reviewed by the Commission Consultative Group and approved by the Commissioner. During 2006–07, 19 The Deputy Commissioner from 1 July 2006 to 13 Commission-wide policies were reviewed or updated. October 2006 was Mr John Pritchard. He presided over two compulsory examinations. Following his In reviewing policies, the ICAC strives to apply the resignation, Ms Theresa Hamilton was appointed by principles of equal employment opportunity and the the NSW Governor as an Assistant Commissioner and Department of Premier and Cabinet’s Dignity and the Commission’s Deputy Commissioner on 8 January Respect: Policy and Guidelines on Preventing and 2007. During the reporting period, Ms Hamilton has Managing Workplace Bullying. presided over three compulsory examinations. The Commission’s special leave and references policies The Commissioner, the Hon Jerrold Cripps QC, were reviewed and redrafted in 2006–07 for review by presided over all public inquiries in 2006–07. the Commission Consultative Group in July 2007.
A Commission working party comprising representatives from all divisions reviewed and
Chapter 6: Our organisation 69 rewrote the code of conduct. After the Commissioner During 2006–07, the ICAC assessed all positions approved the new code in February 2007, staff received to determine the essential competencies needed in comprehensive training on the code’s provisions. Staff addition to the generic competencies required across also completed training on the Commission’s conflicts the Commission. This information will be used as a basis of interest, and gifts and benefits policies and on the for future learning and development programs for staff. fraud and corruption prevention strategy and guidelines. The Commission’s Corporate Induction Program All Commission policies were posted on the intranet was reviewed and redesigned to give new starters a for easy access by staff and the Inspector of the ICAC. series of modules covering human resources, payroll and self-service, security and emergency procedures, Learning and development occupational health and safety, records management and organisational functioning.
Staff had the opportunity to attend in-house courses as The ICAC supported participation of three staff well as external courses, seminars and conferences. members in the Public Sector Executive Development As shown in Table 50 (Appendix 22), there were 803 Program sponsored by the Department of Premier staff attendances at training across ICAC’s six core and Cabinet. In addition to training, 43 staff members learning streams, with each staff member completing on further developed their skills through secondments and average 5.2 days of training. temporary promotional appointments. Attendance increased at courses in the organisational development learning stream, principally due to the generic corporate training associated with the introduction of the new code of conduct. Attendances at courses in the technical skills stream also increased. Figure 12 shows training days per core learning stream.
Figure 12: Training days per core learning stream 2006–07
70 ICAC Annual Report 2006–2007 Provide a safe, equitable, both parties strongly committed to consultation. The Commission Consultative Committee ensured productive and satisfying that workplace issues, policies and procedures, and workplace organisational changes were discussed and resolved quickly and effectively. Conditions of employment There were no industrial disputes involving the and movement in salaries and Commission or the Commissioner during the reporting allowances period.
The Statutory and Other Offices Remuneration Risk management Tribunal determined a performance-based increase of 4 per cent for SES officers and the Commissioner, In 2006–07 the Commission: effective from 1 October 2006. reviewed and updated its risk management policy The new ICAC Award submitted to the Industrial and toolkit Relations Commission in August 2006 was gazetted in November 2006. It provides for a salary increase of continually reviewed and updated physical 4 per cent for staff employed under the award, effective security measures to meet site-specific security from the first full pay period on or after 1 July 2006, requirements, including barrier controls to prevent and another 4 per cent increase effective from the first unauthorised entry full pay period on or after 1 July 2007. The 4 per cent made 30 risk assessments of proceedings increase also applies to relevant allowances, such as conducted by the Commission and implemented those for community languages and first aid skills. additional controls reviewed and updated the emergency evacuation ICAC conditions of employment are in line with the procedure wider NSW public sector conditions, which were enhanced to allow unlimited salary sacrifice. conducted three workplace inspections and two The Commission adopted the options for salary follow-up inspections. Table 18 shows the number sacrifice prescribed by the NSW Government. of hazards reported in the 2006–07 inspections and the risks controlled, together with comparisons for the previous two years. Industrial relations Personnel security
In 2006 the Commission and the Public Service In accordance with ICAC legislation, all staff, consultants Association of NSW negotiated the new ICAC Award and contractors undergo a stringent security clearance already detailed. prior to commencing work. During 2006–07, 35 staff The ICAC and the association maintained a collegial and 18 contractors underwent vetting. When they working relationship throughout the year, with started work, all personnel attended a comprehensive
Table 18: Hazards reported and risks controlled 2004–05 to 2006–07
Reporting period No. of hazards reported Risks controlled to an acceptable level 2004–05 3 Yes 2005–06 7 Yes 2006–07 8 7 controlled and 1 matter outstanding
Chapter 6: Our organisation 71 security induction, which included training on the Other management and staff Commission’s physical and information security committees requirements.
The Commission has a range of other internal Physical security committees as follows.
The Commission updated its personal security scanning Audit Committee equipment, which is integral to maintaining the physical safety of people of interest, visitors and media attending compulsory examinations or public inquiries. The Audit Committee oversees the Commission’s responsibilities for:
Information security financial reporting practices maintenance of comprehensive accounting policies The ICAC is conscious of the risks of securing and practices confidential information and the need to maintain high management and internal controls standards of integrity of its information systems. In 2003 the Commission gained full accreditation to the internal audit. Australian information security standard AS7799.2:2000. The Commission has continued to maintain and Internal audits help the Commission to monitor upgrade its systems and policies to comply with performance and maximise the effectiveness and changes in information security standards. Independent efficiency of activities and processes. The Commission compliance audits are conducted every year. In March appoints independent auditors to undertake annual 2007 the Commission was successful in obtaining internal audits in line with the ICAC’s three-year audit accreditation to the latest ISO/IEC 27001:2005 plan. International Standard for Information Security. The Audit Committee reviewed three audit projects completed during 2006–07. All audit recommendations, which were implemented as agreed, focused on the Be a lead agency in our effectiveness and/or efficiency of: governance and corporate ICAC business continuity plans for identifying and infrastructure managing risks — resulting in plan testing and subsequent update of procedures and processes, including those for managing a pandemic incident Internal governance complaint assessments — resulting in improvements to review and sign-off procedures The Commission has an internal committee system corruption prevention advice — resulting in to oversee major operations, programs and projects. improvements in the use of standard advice The key governance committees are the Strategic disclaimers and development of formal sign off Investigation Group, Prevention Management Group procedures before advice is issued and the Executive Management Group. These committees are discussed further in Chapter 5 finance — resulting in improvements in procedures ‘Accountability’. for handling cancelled cheques, recording invoice dates, spot checking invoices less than $1,000, and checking reconciliations and creditor master file changes.
72 ICAC Annual Report 2006–2007 Information Management and Technology to discuss and agree on policy and procedures Steering Committee on conditions of employment, and resolve issues concerning access and equity, and occupational health The steering committee ensures a coordinated, whole- and safety. The group meets monthly and, in addition of-organisation approach to developing and managing to handling policy matters, it allows staff to raise any information and digital technologies. Membership issues relating to the ICAC Award. For more details see includes the Commissioner, Deputy Commissioner Appendix 20. and all Executive Directors, with the Information Access and Equity Committee Management and Technology Manager providing secretarial support. The Access and Equity Committee plays a major role The role of the steering committee includes: in monitoring and implementing the Commission’s Equal Employment Opportunity (EEO) Management determining direction, priorities and monitoring Plan, Disability Action Plan and Ethnic Affairs Priorities implementation of the information management and Statement. The committee also deals with any technology strategic plan equity issues that may arise within the Commission, overseeing the activities of the Information Security particularly in relation to policies associated with Coordination Group EEO. For details on the activities during 2006–07 see approving recommendations on new information Appendices 17, 18 and 19. management and technology initiatives Occupational Health and Safety Committee endorsing the information management and technology plan budget The committee monitors occupational health and endorsing information management and technology safety (OHS), including action to manage identified policies and procedures. risks, ensure all hazards are removed and achieve the NSW Government’s Working Together: Public Sector Commission Consultative Group OHS and Injury Management Strategy 2005–2008 performance targets. The committee conducts quarterly The Commission Consultative Group is the forum for workplace inspections and meetings. For details on the staff, management and the Public Service Association activities in 2006–07 see Appendix 21.
Members of the commission consultative group include Mr Julian O’Connell, Ms Linda Waugh, Ms Theresa Hamilton, Mr Roy Waldon (left to right, back row), Mr Mick Symons, Ms Virginia Tinson, Mr Andrew Browning and Mr Lance Favelle (left to right, front row).
Chapter 6: Our organisation 73 Code of conduct development of a new complaints handling and case management system.
The ICAC’s code of conduct sets out the principles the Commissioner expects staff to uphold and prescribes specific conduct in areas considered central to the Commission’s functions. The code applies to all employees and other people engaged to work for the Commission.
A Commission-wide working party reviewed the code in late 2006. The Commission Consultative Group endorsed the new code the working party developed and the Commissioner approved it in February 2007.
One of the aims of the new code is to guide staff in making ethical decisions and determining an appropriate Senior Researcher Ms Evalynn Mazurski (right) and Research and course of action. All staff employed at the time the Prevention Officer, Ms Marika Dankin are working on the new new code was released attended a training session, complaints and case management system. which showed through case studies and exercises how the principles of the code should be incorporated into Document scanning everyday work. The new code of conduct has been incorporated into the Commission’s revised induction Towards the end of 2005–06, the ICAC implemented program. A full copy of the code of conduct is set out document scanning for incoming mail and section in Appendix 30. 23 authorities. During 2006–07, the ICAC started to scan documents seized during investigations. Scanned documents are saved into the ICAC’s electronic Information management documents and records management system, allowing and technology systems and investigators access from their workstations. Mail infrastructure recipients are notified by email of scanned documents to allow them to deal with matters immediately. The ICAC Information and Technology Strategic Plan 2004–07 supports the Commission’s corporate Corporate performance information system information requirements and business direction. Initiatives during 2006–07 included improvements to In early 2006–07, the ICAC completed implementation the complaint handling and case management system of the new corporate performance information system (ICS); preparation of a successful business case for which gives senior management access to relevant a new complaint and case management system, full information through a single point on the intranet. implementation of document scanning, and achievement The information is drawn from various databases of accreditation to ISO/IEC International Standards for including human resources, finance and ICS. Information Security. Surveillance and Technical Unit Business case preparation The Surveillance and Technical Unit purchased three Work was completed on the high-level requirement high-end computers and related hardware and software specifications and the feasibility of replacing the to enhance the forensic capability of the Commission. ICS with a system currently available on the market A multi-purpose data archiving machine was acquired was assessed. A business case was developed and to ensure the available space on the unit’s storage area submitted to the NSW Government in October 2006. network is managed efficiently. The machine will also be The Commission’s submission was accepted and used to archive data on CD and DVD while ensuring funding allocated in the 2007–08 forward estimates for verification of the imaged data.
74 ICAC Annual Report 2006–2007 Monitoring performance and Staff performance management effective resource management The ICAC recognises that effective, objective and fair performance management is fundamental to achieving Setting direction and goals its corporate goals and strategies. In managing staff performance the Commission strives to:
Strategic plan ensure two-way communication improve performance and address barriers to The Commission’s strategic plan is based on our performance development and the achievement of mission of combating corruption and improving the work goals integrity of the NSW public sector. It sets out key provide opportunities for ongoing staff result areas, objectives and performance measures. In development reviewing the strategic plan each year, the Executive Management Group examines the risks and challenges recognise staff contributions. facing the organisation and considers opportunities to improve operations and services. All Commission employees have an annual performance agreement and participate in formal reviews with their manager. In the 2006–07 performance reviews, 96 per Business plans cent of staff were rated fully competent or better. All performance agreements have an associated plan The Commission’s business plan identifies how each which covers training and personal development for the area of the Commission will contribute to our mission, upcoming year. key result areas, corporate objectives and targets. Assessments, investigation, corruption prevention, The Commission’s performance management system education and research, legal services and corporate was redesigned in 2005, with updates in 2006 to the services business units all have annual business plans performance agreement templates, including a guide to supported by business unit budgets. This planning assist managers and staff in completing agreements and approach flows down through the annual business undertaking performance reviews. unit plans to individual staff performance agreements, ensuring appropriate levels of accountability and Shared corporate services ownership of the Commission’s objectives and targets. The NSW Government has promoted the use of Monitoring performance shared corporate services in the interests of improving service delivery, realising the benefits of technology and reducing costs. The Commission participates in a shared Quarterly business plan reviews corporate service arrangement with the Health Care Complaints Commission (HCCC) on a fee-for-service The Executive Management Group monitors progress basis. quarterly against performance targets and key actions through business unit plans. In 2006–07 the ICAC provided corporate service support to the HCCC in:
Monthly financial and staff reports overseeing the management of its corporate services unit Every month the Executive Management Group reviews corporate planning and risk management a summary of the Commission’s financial performance financial planning and financial management and projected financial results. Detailed operating statements are provided for each business unit. There human resources advice, planning and policy is also a staff report on staff movements, absences and development projected staffing for the year. information management, planning and policy development, and technology planning and advice.
Chapter 6: Our organisation 75 76 ICAC Annual Report 2006–2007 CHAPTER 7: FINANCIAL STATEMENTS
213 4 5 6 7 8
Chapter 77 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007
Pursuant to Section 45F of the Public Finance and Audit Act 1983, I state that:
a. the accompanying financial statements have been prepared in accordance with the provisions of the Public Finance and Audit Act 1983, the Financial Reporting Code for Budget Dependent Agencies, the applicable clauses of the Public Finance and Audit (General) Regulation 2005 and the Treasurer’s Directions;
b. the financial statements exhibit a true and fair view of the financial position and transactions of the Commission; and
c. there are no circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.
The Hon Jerrold Cripps QC Commissioner
16 October 2007
78 ICAC Annual Report 2006–2007 INDEPENDENT AUDITOR’S REPORT Independent Commission Against Corruption
To Members of the New South Wales Parliament I have audited the accompanying financial report of the Independent Commission Against Corruption (the Department), which comprises the balance sheet as at 30 June 2007, and the operating statement, statement of recognised income and expense, cash flow statement, and summary of compliance with financial directives for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Auditor’s Opinion In my opinion, the financial report: presents fairly, in all material respects, the financial position of the Department as of 30 June 2007, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) is in accordance with section 45E of the Public Finance and Audit Act 1983 (the PF&A Act) and the Public Finance and Audit Regulation 2005. Department Head’s Responsibility for the Financial Report The Department Head is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the PF&A Act. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility My responsibility is to express an opinion on the financial report based on my audit. I conducted my audit in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Department’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Department Head, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. My opinion does not provide assurance: about the future viability of the Department, that it has carried out its activities effectively, efficiently and economically, about the effectiveness of its internal controls, or on the assumptions used in formulating the budget figures disclosed in the financial report. Independence In conducting this audit, the Audit Office has complied with the independence requirements of the Australian Auditing Standards and other relevant ethical requirements. The PF&A Act further promotes independence by: providing that only Parliament, and not the executive government, can remove an Auditor General, and mandating the Auditor-General as auditor of public sector agencies but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office are not compromised in their role by the possibility of losing clients or income.
Peter Achterstraat Auditor-General 18 October 2007 SYDNEY
Chapter 7: Financial statements 79 OPERATING STATEMENT for the year ended 30 June 2007
Actual Budget Actual 2007 2007 2006 Notes $’000 $’000 $’000
Expenses excluding losses
Operating Expenses
Employee related 2(a) ,990 , ,259 Other operating expenses 2(b) , , ,037 Depreciation & Amortisation 2(c) Total Expenses excluding losses 16,729 17,122 15,860 Less:
Revenue
Sale of goods and services 3(a) 0 Investment revenue 3(b) 123 3 5 9 Grant - Digital Mobile Network 3(c) - - Other revenue 3(d) 71 3 0 92 Total Revenue 487 215 415
Gain on disposal 4 1 - (22) Net Cost of Services 21 16,241 16,907 15,467
Government Contributions
Recurrent appropriation 5 15, , ,886 Capital appropriation 0 Acceptance by the Crown Entity of employee benefits and other liabilities 0 Total Government Contributions 16,467 16,846 15,630
SURPLUS FOR THE YEAR 226 (61) 163
STATEMENT OF RECOGNISED INCOME AND EXPENSE for the year ended 30 June 2007
Actual Budget Actual 2007 2007 2006 Notes $’000 $’000 $’000
TOTAL INCOME AND EXPENSE RECOGNISED DIRECTLY IN EQUITY - - -
Surplus for the Year 226 (61)
TOTAL INCOME AND EXPENSE 15 RECOGNISED FOR THE YEAR 226 (61) 163
The accompanying notes form part of these statements
80 ICAC Annual Report 2006–2007 BALANCE SHEET as at 30 June 2007
Actual Budget Actual 2007 2007 2006 Notes $’000 $’000 $’000
ASSETS
Current Assets Cash and cash equivalents , , ,741 Receivables
Total Current Assets 2,213 2,827 2,426
Non-Current Assets
Property, Plant and Equipment 10 - Leasehold improvements - Plant and equipment 900 ,037 Intangible assets 0
Total Non-Current Assets 1,357 1,305 1,633
Total Assets 3,570 4,132 4,059
LIABILITIES
Current Liabilities
Payables 0 Provisions ,110 ,240 ,094 Other 0 0
Total Current Liabilities 1,434 2,321 2,150
Non Current Liabilities Provisions 13 8 7 7
Total Non-Current Liabilities 8 7 7
Total Liabilities 1,442 2,328 2,157
Net Assets 2,128 1,804 1,902
EQUITY 15
Assets Revaluation Reserve Accumulated funds ,700 , ,474
Total Equity 2,128 1,804 1,902
The accompanying notes form part of these statements
Chapter 7: Financial statements 81 CASH FLOW STATEMENT for the year ended 30 June 2007
Actual Budget Actual 2007 2007 2006 Notes $’000 $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee related (11,584) (11,602) (10,765) Other (4,806) (4,688) (4,539)
Total Payments (16,390) (16,290) (15,304)
Receipts Sale of goods and services 0 Interest received 123 36 91 GST Refund received 470 08 Other 209 725 1
Total Receipts 1,013 911 649
Cash Flows From Government Recurrent appropriation , , ,755 Capital appropriation 0 0 0 Cash transfers to the Consolidated Fund (880) (409)
Net Cash Flows from Government 15,334 16,226 15,586
NET CASH FLOWS FROM OPERATING ACTIVITIES 21 (43)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of plant and equipment 4 (1) - - Purchases of plant and equipment (306) (240) (229)
NET CASH FLOWS USED IN INVESTING ACTIVITIES (307) (240) (229)
NET INCREASE/(DECREASE) IN CASH (350) 0 02
Opening cash and cash equivalents , ,039
CLOSING CASH AND CASH EQUIVALENTS 8 1,391 1,465 1,741
The accompanying notes form part of these statements
82 ICAC Annual Report 2006–2007 SUMMARY OF COMPLIANCE WITH FINANCIAL DIRECTIVES for the year ended 30 June 2007
2007 2006 Expenditure/ Expenditure/ Expenditure/ Expenditure/ Net claim on Net claim on Net claim on Net claim on Recurrent Consolidated Capital Consolidated Recurrent Consolidated Capital Consolidated Appropriation Fund Appropriation Fund Appropriation Fund Appropriation Fund $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Original Budget Appropriation/ Expenditure
Appropriation Act 15,974 15,845 240 236 15,773 14,886 240
Additional Appropriations
S21A PF&AA – special appropriation
S24 PF&AA – transfer of functions between departments
S26 PF&AA – Commonwealth specific purpose payments 15,974 15,845 240 236 15,773 14,886 240 229
Other Appropriations/ Expenditure
Treasurer’s Advance
Section 22 – expenditure for certain works and services
Transfers from another agency (Section 28 of the Appropriation Act)
Enforced savings - reduction due to abolishment of ORC - (18)
- - - - (18) - - - Total Appropriations Expenditure/Net Claim on Consolidated Fund (includes transfer payments) 15,974 15,845 240 236 15,755 14,886 240 229 Amount drawn down against Appropriation 15,974 240 15,755 240 Liability to Consolidated Fund* 129 4 869 11
The Summary of Compliance is based on the assumption that Consolidated Fund moneys are spent first (except where otherwise identified or prescribed).
The “Liability to Consolidated Fund” represents the difference between the “Amount drawn down against Appropriation” and the “Total Expenditure/Net Claim on Consolidated Fund.
The accompanying notes form part of these statements
Chapter 7: Financial statements 83 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
1.SUMMARY OF SIGNIFICANT ACCOUNTING spend the money lapses and generally the unspent POLICIES amount must be repaid to the Consolidated Fund in the following year. As a result, unspent appropriations (a) Reporting Entity are now accounted for as liabilities rather than revenue. The Commission is constituted by the Independent Commission The liability is disclosed in Note 14 as part of “Current Against Corruption Act 1988. The main objective of the liabilities - Other”. The amount will be repaid and the Commission is to minimise corrupt activities and enhance and the liability will be extinguished next financial year. the integrity of the NSW public sector administration. These financial statements report on all the operating activities under (ii) Sale of Goods the control of the Commission. Revenue from the sale of goods is recognised as The Independent Commission Against Corruption is a NSW revenue when the agency transfers the significant risks government department. The Commission is a not-for-profit and rewards or ownership of the assets. entity (as profit is not its principal objective) and it has no cash (iii) Rendering of Services generating units. The reporting entity is consolidated as part of the NSW Total State Sector Accounts. Revenue is recognised when the service is provided or by reference to the stage of completion (based on This financial report for the year ended 30 June 2007 has been labour hours incurred to date). authorised for issue by the Commissioner on 16 October 2007. (iv) Investment revenue (b) Basis of Preparation Interest revenue is recognised as it accrues using the The Commission’s financial statements are a general purpose effective interest method as set out in AASB 139 Financial financial report which has been prepared on an accruals basis Instruments: Recognition and Measurement. and in accordance with: (e) Employee Benefits and other provisions. applicable Australian Accounting Standards (which include Australian Equivalents to International Financial Reporting (i) Salaries and Wages, Annual Leave, Sick Leave Standards (AEIFRS)); and On Costs the requirements of the Public Finance and Audit Act 1983 Liabilities for salaries and wages (including non-monetary and Regulations 2005; and benefits), annual and paid sick leave that fall due wholly within 12 months of the reporting date are recognised the Financial Reporting Directions published in the Financial and measured in respect of employees’ services up to the Reporting Code for Budget Dependent Government Sector reporting date at undiscounted amounts based on the Agencies or issued by the Treasurer under section 9(2) of amounts expected to be paid when the liabilities are settled. the Act. Unused non-vesting sick leave does not give rise to a The financial statements are prepared in accordance with the liability, as it is not considered probable that sick leave historical cost convention, except for leasehold improvement taken in the future will be greater than the benefits non-current assets which are recorded at valuation. accrued in the future. Judgments, key assumptions and estimations management The outstanding amounts of payroll tax, workers has made are disclosed in the relevant notes to the financial compensation insurance premiums and fringe benefits tax, statements. All amounts are rounded to the nearest one which are consequential to employment, are recognised thousand dollars and expressed in Australian currency. as liabilities and expenses where the employee benefits to (c) Statement of Compliance which they relate have been recognised. The financial report complies with Australian Accounting (ii) Long Service Leave and Superannuation Standards, which include the Australian equivalents to the International Financial Reporting Standards (AEIFRS). The Commission’s liabilities for long service leave and superannuation are assumed by the Crown Entity. (d) Income Recognition The Commission accounts for the liability as having Income is measured at the fair value of the consideration or been extinguished resulting in the amount assumed contribution received or receivable. Additional comment regarding being shown as part of the non-monetary revenue the accounting policies for the recognition of revenue are items described as “Acceptance by the Crown Entity of discussed below. Employee Benefits and other Liabilities”. Prior to 2005/06 (i) Parliamentary Appropriations the Crown Entity also assumed the defined contribution superannuation liability. Parliamentary appropriations are generally recognised as income when the Commission obtains control over the assets The Crown calculates the present value of the comprising the appropriations. Control over appropriations Commission’s long service leave based on the nominal is normally obtained upon the receipt of of cash. value calculated by the Commission, the market yield on government bonds as at 30 June 2007 and valuation ratios An exception to the above is when appropriations provided by the Treasury’s actuary. (TC 07/04) are unspent at year-end. In this case, the authority to
84 ICAC Annual Report 2006–2007 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
Long service leave on-costs are not assumed by the Crown available market evidence, the asset’s fair value is measured at its Entity and are the responsibility of the Commission, except market buying price, the best indicator of which is depreciated for the related superannuation on-costs and long service replacement cost. leave accruing while on long service leave. Each class of physical non-current assets is revalued every five The superannuation expense for the financial year years and with sufficient regularity to ensure that the carrying is determined by using the formulae specified in amount of each asset in the class does not differ materially from the Treasurer’s Directions. The expense for certain its fair value at reporting date. superannuation schemes (i.e. Basic Benefit and First Non-specialised assets with short useful lives are measured at State Super) is calculated as a percentage of the depreciated historical cost, as a surrogate for fair value. employees’ salary. For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities When revaluing non-current assets by reference to current prices Superannuation Scheme), the expense is calculated as a for assets newer than those being revalued (adjusted to reflect the multiple of the employee’s superannuation contributions. present condition of the assets), the gross amount and the related accumulated depreciation is separately restated. (f) Insurance For other assets, any balances of accumulated depreciation existing The Commission’s insurance activities are conducted through at the revaluation date in respect of those assets are credited to the NSW Treasury Managed Fund Scheme of self-insurance for the asset accounts to which they relate. The net asset accounts Government agencies. The expense (premium) is determined by are then increased or decreased by the revaluation increments or the Fund Manager based on past claim experience. decrements. (g) Accounting for the Goods and Services Tax (GST) Revaluation increments are credited directly to the asset revaluation Revenues, expenses and assets are recognised net of GST, except: reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously where the GST incurred by the agency as a purchaser recognised as an expense in the surplus/deficit, the increment is that is not recoverable from the Australian Taxation Office recognised immediately as revenue in the surplus/deficit. recognised as part of the cost of acquisition of an asset or as part of the item of expense. Revaluation decrements are recognised immediately as expenses in the surplus/deficit, except that, to the extent that a credit balance where receivables and payables are stated with GST exists in the asset revaluation reserve in respect of the same class included. of assets, they are debited directly to the asset revaluation reserve. in the cash flow statement. As a not-for-profit entity, revaluation increments and decrements (h) Acquisitions of Assets are offset against one another within a class of non-current assts, The cost method of accounting is used for the initial recording of but not otherwise. all acquisitions of assets controlled by the Commission. Cost is Where an asset that has previously been revalued is disposed of, the amount of cash or cash equivalents paid or the fair value of any balance remaining in the asset revaluation reserve in respect of the acquisition or construction or, where applicable, the amount that asset is transferred to accumulated funds. attributed to that asset when initially recognised in accordance (k) Impairment of Property, Plant and Equipment with the specific requirements of other Australian Accounting Standards. As a not-for-profit entity with no cash generating units, the Commission is effectively exempted from AASB 136 Impairment of (i) Capitalisation Thresholds Assets and impairment testing. This is because AASB 136 modifies Property, plant and equipment and intangible assets acquired with the recoverable amount test to the higher of fair value less costs an expected life in excess of one year and with a value of $5,000 to sell and depreciated replacement cost. This means that, for an and above (or forming part of a network costing more than asset already measured at fair value, impairment can only arise if $5,000) are capitalised. selling costs are material. Selling costs are regarded as immaterial. (j) Revaluation of Property, Plant and Equipment (l) Depreciation of Property, Plant and Equipment Physical non-current assets are valued in accordance with the Depreciation is provided for on a straight-line basis for all “Guidelines for the Valuation of Physical Non-Current Assets at depreciable assets so as to write off the depreciable amount Fair Value” (TPP 07–01). This policy adopts fair value in accordance of each asset as it is consumed over its useful life to the with AASB 116 Property, Plant and Equipment. Commission. The Commission’s leasehold improvements when Property, plant and equipment is measured on an existing use constructed were projected to have a useful life of fifteen years basis, where there are no feasible alternative uses in the existing or the unexpired period of the lease. The Commission’s plant and natural, legal, financial and socio-political environment. However, in equipment, when purchased, are projected to have a useful life of the limited circumstances where there are feasible alternative uses, five years. assets are valued at their highest and best use. The Commission reviewed the depreciation rate for computer Fair value of property, plant and equipment is determined based equipment and computer software and applied a revised useful life on the best available market evidence, including current market estimate of four years to purchases from 2004-05 and onwards. selling prices for the same or similar assets. Where there is no
Chapter 7: Financial statements 85 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
(m) Maintenance (r) Budgeted Amounts The costs of maintenance are charged as expenses as incurred, The budgeted amounts are drawn from the budgets as formulated except where they relate to the replacement of a component of an at the beginning of the financial year and with any adjustments the asset, in which case the costs are capitalised and depreciated. effects of additional appropriations, s21A, s24 and/or s 26 of the Public Finance and Audit Act 1983. (n) Leased Assets The budgeted amounts in the Operating Statement and the Cash A distinction is made between finance leases, which effectively Flow Statement are generally based on the amounts disclosed transfer from the lessor to the lessee substantially all the risks and in the NSW Budget Papers (as adjusted above). However, in the benefits incidental to ownership of the leased assets, and operating Balance Sheet, the amounts vary from the Budget Papers, as the leases under which the lessor effectively retains all such risks and opening balances of the budgeted amounts are based on the benefits. carried forward actual amounts, i.e. per the audited financial Where a non-current asset is acquired by means of a finance lease, statements (rather than carried forward estimates). the asset is recognised at its fair value at the commencement of (s) New Australian Accounting Standards issued but not the lease term. The corresponding liability is established at the yet effective same amount. Lease payments are allocated between the principal component and the interest expense. The Commission has no At the reporting date, a number of Accounting Standards adopted finance lease arrangements. by the AASB had been issued but are not yet effective and have not been early adopted by the Commission. Operating lease payments are charged to the Operating Statement in the periods in which they are incurred. The following is a list of these standards: (o) Intangible Assets AASB 7 & AASB 2005-10 Financial instruments: Disclosure (issued August 2005) The Commission recognises intangible assets only if it is probable that future economic benefits will flow to the Commission and AASB 8 & AASB 2007-3 - Operating Segments the cost of the asset can be measured reliably. Intangible assets are AASB 101 - Presentation of Financial Statements (issued measured initially at cost. October 2006) Where an asset is acquired at no or nominal cost, the cost is its AASB 123 & AASB 2007-6 - Borrowing Costs (issued June fair value as at the date of acquisition. 2007) The useful lives of intangible assets are assessed to be finite. AASB 1049 - General Government Sector and GFS/GAAP Intangible assets are subsequently measured at fair value only if convergence there is an active market. As there is no active market for the Commission’s intangible assets, the assets are carried at cost less AASB 2007-4 - Australian additions to and deletions from any accumulated amortisation. The agency’s intangible assets are IFRSs amortised using the straight line method over 4 years. Interpretation 4 (Feb 2007) - Determining whether an In general, intangible assets are tested for impairment where arrangement contains a lease an indicator of impairment exists. However, as a not-for-profit Interpretation 10 - Interim financial reporting entity with no cash generating units, the Commission is effectively exempted from impairment testing (refer para (k)). The Standards are operative for annual reporting periods beginning (p) Receivables on or after 1 January 2007. However, the Commission is not able to reliably measure the impact of the initial application of these Receivables are recognised initially at fair value, usually based standards on the financial results of the Commission. on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for any impairment of receivables. Short-term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. An allowance for impairment of receivables is established when there is objective evidence that the entity will not be able to collect all amounts due. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. (q) Payables These amounts represent liabilities for goods and services provided to the Commission and other amounts. Payables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial.
86 ICAC Annual Report 2006–2007 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
2007 2006 $’000 $’000
2. EXPENSES EXCLUDING LOSSES (a) Employee related expenses
Salaries and wages (including recreation leave) 10,0 ,375 Superannuation - defined benefit plans Superannuation - defined contribution plans Long service leave Workers compensation insurance 10 Contractor & temporary assistance Payroll tax and fringe benefits tax 11,990 ,259
(b) Other operating expenses
Auditor’s remuneration – audit or review of the financial reports 34 31 Bad and doubtful debts - - Operating lease rental expense – minimum lease payments 1, ,718 Insurance 36 38 Cleaning 19 20 Electricity 46 45 Travelling, air fares and subsistence 87 59 Motor vehicles 22 15 Consultancies - - External Legal fees Transcript fees 65 57 Fees for services 0 Contract security services Training Advertising and publicity 56 38 Books and subscriptions 122 86 Postal and telephone Printing 10 Stores and specialised supplies 10 06 Minor computer equipment/licences 00 Courier & Freight 9 10 Maintenance* Other 4, ,037
* Reconciliation - Total maintenance Maintenance expense - other (non-employee related), as above 218 236 Employee related maintenance expense included in Note 2(a) - - Total maintenance expenses included in Note 2(a) + 2(b)
Chapter 7: Financial statements 87 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
2007 2006 $’000 $’000
(c) Depreciation and amortisation
Depreciation Computer equipment 30 Plant and equipment 91 90 39
Amortisation Leasehold improvements 81 73 Intangibles - Computer software 19
Total depreciation and amortisation
3. REVENUES (a) Sale of goods and services
Corporate Services Support - HCCC 05 Sale of transcripts - - Presentation and Seminar Fees 19 27 21
(b) Investment Revenue
Interest 123 91 123 91
(c) Grants & Contributions
Digital Mobile Network - Commerce 82 - 82 -
(d) Other revenue
Other 71
4. GAIN ON DISPOSAL
Gain on disposal Written down value of assets disposed 1 22 1 22
88 ICAC Annual Report 2006–2007 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
2007 2006 $’000 $’000
5. APPROPRIATIONS
Recurrent appropriations Total recurrent draw downs from Treasury 15, ,755 (per Summary of Compliance) Less: Liability to Consolidated Fund * (129) (869) (per Summary of Compliance) 15, ,886
Comprising: Recurrent appropriations 15, ,886 (per Operating Statement)
Capital appropriations Total capital draw downs from Treasury 240 0 (per Summary of Compliance) Less: Liability to Consolidated Fund * (4) (11) (per Summary of Compliance) 23
Comprising: Capital appropriations (per Operating Statement) * The Liability to Consolidated Fund is recognised in the Balance Sheet as a Current Liability - Other
6. ACCEPTANCE BY THE CROWN ENTITY OF EMPLOYEE BENEFITS AND OTHER LIABILITIES
The following liabilities and/or expenses have been assumed by the Crown Entity:
Superannuation (defined benefit) Long service leave 0 Payroll tax (on employer superannuation contributions) 54 50 38
7. PROGRAM / ACTIVITIES OF THE COMMISSION The Independent Commission Against Corruption operates under a single program for Treasury reporting purposes. For the 2006-2007 financial year this program was identified as 5.1.1 Investigation, Community Education and Prevention of Corruption. Program Objective To minimise corrupt activities and enhance the efficiency and integrity of government administration. Program Description Investigation of possible corrupt conduct, advice for public authorities on ways in which to prevent corrupt conduct and education of the community about the detrimental effects of corruption.
Chapter 7: Financial statements 89 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
2007 2006 $’000 $’000
8. CURRENT ASSETS – CASH AND CASH EQUIVALENTS
Cash at bank and on hand 1, ,741 1, ,741
For the purposes of the Cash Flow Statement, cash includes cash on hand, cash at bank, short term deposits and bank overdraft. Interest is earned on daily bank balances at the monthly average NSW Treasury Corporation (Tcorp) 11 am unofficial cash rate adjusted for a management fee to Treasury. The average interest rate during the period was 5.14%. The average rate for the year ended 05-06 was 4.54%. Cash assets recognised in the Balance Sheet are reconciled to cash at the end of the financial year as shown in the Cash Flow Statement as follows:
Cash and cash equivalents (per Balance Sheet) 1, ,741
Closing cash and cash equivalents 1, ,741
(Per Cash Flow Statement)
9. CURRENT ASSETS – RECEIVABLES
Sale of goods and services 3 60 Other receivables 0 Prepayments 500 82
Management expects to receive all amounts due - therefore no impairment provision has been raised.
10. NON CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT
Leasehold Plant and Computer Improvements Equipment Equipment Total $’000 $’000 $’000 $’000
At 1 July 2006 At Cost ,280 ,241 3,095 Accumulated depreciation/amortisation (257) (1,004) (480) (1,741) Net carrying amount 317 276 761 1,354
At 30 June 2007 At Cost , ,339 3,354 Accumulated depreciation/amortisation (335) (1,094) (786) (2,215) Net carrying amount 239 347 553 1,139
90 ICAC Annual Report 2006–2007 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
Reconciliation A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the current reporting period is set out below.
Leasehold Plant and Computer Improvements Equipment Equipment Total $’000 $’000 $’000 $’000
Year ended 30 June 2007 Net carrying amount at start of year 317 276 761 1,354 Additions - 161 98 259 Disposals - - - - Transfer - - - - Net revaluation increments - - - - Depreciation/amortisation w/b on disposal - - - - Depreciation/amortisation expense (78) (90) (306) (474) Net carrying amount at end of year 239 347 553 1,139
At 1 July 2005 At Cost , ,216 3,164 Accumulated depreciation/amortisation (192) (1,137) (201) (1,530) Net carrying amount 381 238 1,015 1,634
At 30 June 2006 At Cost ,280 ,241 3,095 Accumulated depreciation/amortisation (257) (1,004) (480) (1,741) Net carrying amount 317 276 761 1,354
Reconciliation A reconciliation of the carrying amount of each class of property, plant and equipment of the beginning and end of the current reporting period is set out below. Year ended 30 June 2006 Net carrying amount at start of year 381 ,015 1,634 Additions 9 128 33 170 Disposals (8) (223) (8) (239) Net revaluation increments - - - - Depreciation/amortisation w/b on disposal 8 223 8 239 Depreciation/amortisation expense (73) (90) (287) (450) Net carrying amount at end of year 317 276 761 1,354
11. INTANGIBLE ASSETS Software Total $’000 $’000
At 1 July 2006 Cost (gross carrying amount) 910 910 Accumulated amortisation (631) (631) Net carrying amount 279 279
At 30 June 2007 Cost (gross carrying amount) 959 959 Accumulated amortisation (741) (741) Net carrying amount 218 218
Chapter 7: Financial statements 91 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
Software Total $’000 $’000 Year ended 30 June 2007 Net carrying amount at start of year 279 279 Additions 51 51 Disposals - - Transfer - - Net revaluation increments - - Amortisation w/b on disposal/transfer - - Amortisation expense (112) (112) Net carrying amount at end of year 218 218
At 1 July 2005 Cost (gross carrying amount) 951 951 Accumulated amortisation (595) (595) Net carrying amount 356 356
At 30 June 2006 Cost (gross carrying amount) 910 910 Accumulated amortisation (631) (631) Net carrying amount 279 279
Year ended 30 June 2006 Net carrying amount at start of year 356 356 Additions 59 59 Disposals (100) (100) Net revaluation increments - - Amortisation w/b on disposal/transfer 78 78 Amortisation expense (114) (114) Net carrying amount at end of year 279 279
12. CURRENT LIABILITIES – PAYABLES
Accrued salaries, wages and on-costs 43 43 Accrued Expenses 148 133 191 176
13. CURRENT / NON CURRENT LIABILITIES – PROVISIONS Current Employee benefits and related on-costs Recreation leave (includes annual leave loading) 909 902 Payroll tax and fringe benefits tax payable 1 145 LSL on costs not assumed by crown 200 47 1,110 1,094
Non Current Employee benefits and related on-costs LSL on costs not assumed by crown 3 5 Provision for payroll tax on long service leave 5 2 8 7
92 ICAC Annual Report 2006–2007 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
2007 2006 $’000 $’000
Aggregate employee benefits and related
Provision - current 1,110 ,094 Provision - non current 8 7 Accrued salaries, wages and on-costs (Note 12) 43 43 1,161 1,144
14. CURRENT LIABILITIES – OTHER
Recurrent Allocation 129 869 Capital Allocation 4 11 Liability to Consolidated Fund 133 880
15. CHANGES IN EQUITY Accumulated Asset Revaluation Total Funds Reserve Equity
2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000
Balance at the beginning 1, , ,90 ,739 of the financial year
Surplus/(Deficit) for the year 226 163 - - 226 163 Accumulated Funds as at 30 June 1,700 1,474 428 428 2,128 1,902
16. COMMITMENTS FOR EXPENDITURE
(a) Other Expenditure Commitments
2007 2006 $’000 $’000
Aggregate other expenditure for the acquisition of goods/services contracted for at balance date and not provided for:
Not later than one year 36 66 Later than one year and not later than five years - - Later than five years - - Total (including GST) 36 66
(b) Operating Lease Commitments
Future non-cancellable operating lease rental not provided for and payable:
Not later than one year 1,870 ,777 Later than one year and not later than five years 2, ,065 Later than five years - - Total (including GST) 4,259 5,842
The total “operating lease commitments” above includes potential input tax credits of $387,185 (30 June 2006 - $531,091) that are expected to be recoverable from the ATO. The operating lease commitments represent the eight-year lease for the current accommodation at Piccadilly Center and motor vehicle leases.
Chapter 7: Financial statements 93 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
17. CONTINGENT LIABILITIES A contingent liability exists for the cost of restoring leased premises in accordance with the lease contract. The ICAC is not able to reliably measure such costs.
18. BUDGET REVIEW Net cost of services There was a variance between budgeted and actual net cost of services of $666,000. This variance can be attributed to lower than anticipated employee related expenses resulting from delays between resignations/recruitment.
Assets and liabilities
Current assets were $614,000 lower than budget due to an decrease in the Commission’s cash balances and higher than expected receivables.
Current liabilities were $887,000 lower than budget due to a decrease in the liability to consolidated fund for the 2006-07 financial year and lower than expected employee related provisions.
19. FINANCIAL INSTRUMENTS The Commission’s principal financial instruments are outlined below. These financial instruments arise directly from the Commission’s operations. The Commission does not enter into or trade financial instruments for speculative purposes. The Commission does not use financial derivatives.
Cash Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily bank balances at the monthly average NSW Treasury Corporation (Tcorp) 11am unofficial cash rate, adjusted for a management fee to NSW Treasury.
Receivables All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. An allowance for impairment is raised when there is objective evidence that the entity will not be able to collect all amounts due. The credit risk is the carrying amount (net of any allowance for impairment). No interest is earned on trade debtors. The carrying amount approximates fair value.
Trade Creditors and Accruals The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in Treasurer’s Directions 210.01. If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. Treasurer’s Direction 219.01 allows the Minister to award interest for late payment.
94 ICAC Annual Report 2006–2007 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2007
2007 2006 $’000 $’000
20. TRUST FUNDS – APSAC 2007
Opening balance as at 1 July 2006 100 -
Add: Contributions^ 50 100 Add: Registrations~ 209 - Less: Expenditures* 63 -
Closing balance as at 30 June 2007 296 100
Conference Bank balance as at 30 June 2007 359 100
Less: Amounts owing to ICAC 63 - Trust Funds – APSAC 2007 296 100
The Commission entered into an agreement with the Crime and Misconduct Commission (QLD) and the Corruption and Crime Commission (WA) to organise and conduct a national conference on public sector corruption to be held in Sydney (NSW) in October 2007. Each party to the agreement contributed an initial payment of $50,000 towards the cost of delivery of the project in 2005/06. These funds are held in trust.
^ initial contributions by CCC (WA) received in July 2006. ~ registration fees, sponsorships and bank interest received. * in 2006/07, ICAC made payments of $63,306 (advertising, event management fees and venue hire) from its operating bank account on behalf of the Trust. The ICAC expects to be reimbursed from the Trust at the conclusion of the Conference in October 2007.
21. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET COST OF SERVICES
2007 2006 $’000 $’000
Net Cash Used on Operating Activities 20 931 Cash Flows from Government / Appropriations (15,334) (15,586) Acceptance by Crown Entity of employee benefits and (386) (515) other liabilities - - Depreciation (585) (564) Decrease/(increase) in provision for employee entitlements (17) 63 Decrease/(increase) in other provisions - - Increase/(decrease) in prepayments and other assets 95 267 Decrease/(increase) in payables (13) (41) Net gain/(loss) on sale of assets (21) (22)
Net Cost of Services (16,241) (15,467)
Chapter 7: Financial statements 95 96 ICAC Annual Report 2006–2007 CHAPTER 8: APPENDICES
213 4 5 6 7 8
Chapter 97 Appendices
n Appendix 1: Complaints profile n Appendix 17: Access and equity n Appendix 2: Statutory reporting n Appendix 18: Disability Action Plan n Appendix 3: Prosecutions and disciplinary n Appendix 19: Ethnic Affairs Priority actions in 2006–07 arising from ICAC Statement investigations n Appendix 20: Commission Consultative n Appendix 4: Implementation of Group recommendations for reform arising from n Appendix 21: Occupational health and ICAC investigations safety (OHS) n Appendix 5: The ICAC and litigation n Appendix 22: Training statistics n Appendix 6: Legal change n Appendix 23: Consultancies n Appendix 7: Complaints against ICAC officers n Appendix 24: Payment performance n Appendix 8: Privacy and personal information indicators n Appendix 9: Statement of affairs n Appendix 25: Electronic service delivery n Appendix 10: Freedom of information n Appendix 26: Insurance activities n Appendix 11: Participation in significant n Appendix 27: Major assets committees n Appendix 28: Energy management n Appendix 12: ICAC publications in 2006–07 n Appendix 29: Waste reduction and n Appendix 13: Summary of training purchasing policy engagements, presentations and delegation n Appendix 30: Code of conduct visits n Appendix 31: Review of credit card use n Appendix 14: Overseas travel n Appendix 32: Major works in progress n Appendix 15: Organisational chart n Appendix 33: Guarantee of service n Appendix 16: Chief Executive Officer and Senior Executive Service
98 ICAC Annual Report 2006–2007 APPENDIX 1: COMPLAINTS PROFILE Table 19: Allegations contained in complaints and reports (section 10, section 11 and protected disclosures) received in 2006–07
Complaints Reports from from the public sector public agencies Protected Conduct (Section 10 ) % (Section 11) % disclosures % TOTAL % Assault/sexual assault/misconduct/ harassment 20 1.8 6 1.6 48 5.5 74 3.1 Breach of policy or procedure 119 10.5 57 15.3 116 13.4 292 12.4 Bribery/gift/secret commission 70 6.2 21 5.6 65 7.5 156 6.6 Collusion 103 9.1 25 6.7 42 4.8 170 7.2 Drug/alcohol traffic/use 8 0.7 1 0.3 36 4.1 45 1.9 Fabricate/falsify info/forgery/fraud/ tamper info 79 7.0 20 5.4 105 12.1 204 8.6 Failure to advertise appropriately, e.g. contracts 22 1.9 12 3.2 4 0.4 38 1.6 Failure to disclose/abuse of conflict of interest 67 5.9 37 10.0 43 4.9 147 6.2 Failure to take action/negligence 71 6.3 24 6.5 29 3.3 124 5.2 Favouritism/nepotism 104 9.2 53 14.3 32 3.7 189 8.0 Harassment/victimisation/discrimination 73 6.4 26 7.0 46 5.3 145 6.1 Improper use of information 26 2.3 7 1.9 35 4.0 68 3.0 Lack of accountability 35 3.1 4 1.0 13 1.5 52 2.2 Misuse/theft of resources by public official 57 5.0 32 8.6 110 12.7 199 8.4 Pervert course of justice/tamper evidence/perjury 26 2.3 2 0.5 8 0.9 36 1.5 Threats/extortion/blackmail/undue influence 23 2.0 4 1.1 9 1.0 36 1.5 Type of corrupt conduct unspecified/ other 226 20.0 41 11.0 123 14.2 390 16.5 TOTAL 1,129 372 864 2,365
Table 20: Percentage of types of allegations received for all matters during 2006–07 compared to the previous two years
Types of allegation 2004–05 % 2005–06 % 2006–07 % Assault/sexual assault/misconduct/harassment 70 2.1 79 2.4 84 2.8 Breach of policy or procedure 464 14.1 450 13.9 353 11.7 Bribery/gift/secret commission 204 6.2 202 6.3 171 5.7 Collusion 250 7.6 288 9.0 209 7.0 Drug/alcohol traffic/use 27 0.8 24 0.7 50 1.7 Fabricate/falsify info/forgery/fraud/tamper info 272 8.3 251 7.8 231 7.7 Failure to advertise appropriately, e.g. contracts 33 1.0 39 1.2 42 1.4 Failure to disclose/abuse of conflict of interest 213 6.5 230 7.1 160 5.3 Failure to take action/negligence 188 5.7 248 7.6 167 5.5 Favouritism/nepotism 273 8.3 225 7.0 222 7.4 Harassment/victimisation/discrimination 202 6.1 241 7.5 195 6.5 Improper use of information 123 3.7 106 3.3 79 2.6 Lack of accountability 113 3.4 128 4.0 77 2.6 Misuse/theft of resources by public official 294 8.9 276 8.6 220 7.3 Pervert course of justice/tamper evidence/perjury 54 1.6 56 1.7 44 1.4 Threats/extortion/blackmail/undue influence 91 2.8 88 2.7 45 1.5 Type of corrupt conduct unspecified/other 425 12.9 297 9.2 657 21.9 TOTAL 3,296 3,228 3,006
Chapter 8: Appendices 99 Table 21: Workplace activities described in complaints and reports by category received during 2006–07
Section 10 Section 11 Protected complaints reports disclosures TOTAL
Activity No. % No. % No. % No. % Other – area of workplace activity unspecified 225 20.0 124 14.6 45 12.0 394 16.7 Building & development applications/rezoning 270 24.0 39 4.6 23 6.1 332 14.1 Employment practices 87 7.7 89 10.5 120 32.0 296 12.6 Codes of conduct 56 5.0 204 24.0 30 8.0 290 12.3 Purchase of goods & services/tendering/contracting 35 3.1 51 6.0 42 11.2 128 5.4 Use of public resources 45 4.0 63 7.4 19 5.1 127 5.4 Law enforcement 79 7.0 35 4.1 12 3.2 126 5.4 Licensing/qualifications/certificates/regulations 69 6.1 28 3.3 0 0.0 97 4.1 Disposal of public assets/tendering/contracting 44 4.0 31 3.6 9 2.4 84 3.6 Law enforcement – courts/tribunals 66 6.0 12 1.4 4 1.0 82 3.5 Staff management 26 2.3 24 2.8 30 8.0 80 3.4 Allocation of public goods & services 49 4.3 18 2.1 4 1.1 71 3.0 Use of confidential information 26 2.3 27 3.2 4 1.1 57 2.4 Cash handling/credit card management 8 0.7 36 4.2 4 1.1 48 2.0 Internal reporting 12 1.0 18 2.1 16 4.2 46 2.0 Secondary employment 2 0.1 19 2.2 1 0.2 22 1.0 Allocation of paid hours 1 0.0 11 1.3 7 1.9 19 0.8 Elections 11 1.0 4 0.5 3 0.8 18 0.8 e-corruption/IT security 1 0.0 13 1.5 1 0.3 15 0.6 Government grants 10 0.9 2 0.2 0 0.0 12 0.5 Dismissal 5 0.4 2 0.2 1 0.3 8 0.3 Post-separation employment 1 0.1 2 0.2 0 0.0 3 0.1 TOTAL NO. OF ACTIVITIES 1,128 852 375 2,355
100 ICAC Annual Report 2006–2007 Table 22: Comparison of workplace activities described in complaints and reports by year received 2004–05 to 2006–07
2004–05 2005–06 2006–07 Activity Total % Total % Total % Other – area of workplace activity unspecified 8 0.3 21 0.8 394 16.7 Building & development applications/rezoning 115 4.3 99 3.7 332 14.1 Employment practices 446 16.7 408 15.2 296 12.6 Codes of conduct 77 2.9 71 2.6 290 12.3 Purchase of goods & services/tendering/contracting 94 3.5 114 4.2 128 5.4 Use of public resources 13 0.5 26 1.0 127 5.4 Law enforcement 199 7.5 148 5.5 126 5.4 Licensing/qualifications/certificates/regulations 11 0.4 14 0.5 97 4.1 Disposal of public assets/tendering/contracting 17 0.6 20 0.7 84 3.6 Law enforcement – courts/tribunals 350 13.1 351 13.1 82 3.5 Staff management 13 0.5 16 0.6 80 3.4 Allocation of public goods & services 48 1.8 61 2.3 71 3.0 Use of confidential information 189 7.1 199 7.4 57 2.4 Cash handling/credit card management 94 3.5 130 4.8 48 2.0 Internal reporting 141 5.3 163 6.1 46 2.0 Secondary employment 288 10.8 326 12.1 22 1.0 Allocation of paid hours 155 5.8 4 0.1 19 0.8 Elections 27 1.0 156 5.8 18 0.8 e-corruption/IT security 2 0.1 28 1.0 15 0.6 Government grants 121 4.5 104 3.9 12 0.5 Dismissal 86 3.2 84 3.1 8 0.3 Post-separation employment 176 6.6 143 5.3 3 0.1 Sponsorship 1 0.0 0 0.0 0 0.0 TOTAL NO. OF ACTIVITIES 2,671 2,686 2,355
Chapter 8: Appendices 101 Table 23: Allegations made under section 10 by sector
No. of Sector allegations %
Local government 340 38.4 Law & justice 79 9.0 Government & financial services 59 6.7 Health 55 6.2 Transport, ports & waterways 53 6.0 Community & human services 48 5.4 Natural resources & environment 38 4.3 Policing 37 4.2 Custodial services 31 3.5 Education (except universities) 26 2.9 Consumer & trade 24 2.7 Land, property & planning 24 2.7 Aboriginal affairs & services 19 2.2 Universities 16 1.8 Energy 10 1.1 Tourism, sport, recreation & gaming 9 1.0 Emergency services 5 0.6 Other – unspecified 5 0.6 Arts & heritage 3 0.3 Employment & industrial relations 2 0.2 Parliament 2 0.2
102 ICAC Annual Report 2006–2007 Table 24: Section 10 complaints received during 2006–07 showing types of workplace activities
No. of times Workplace activity recorded Building & development applications/rezoning 177 Unspecified/Other 172 Employment practices 62 Law enforcement – courts/tribunals 43 Codes of conduct 41 Law enforcement 40 Use of public resources 37 Licensing/qualifications/certificates/regulations 36 Allocation of public goods & services 28 Disposal of public assets/tendering/contracting 25 Purchase of goods & services/tendering/contracting 21 Use of confidential information 17 Staff management 15 Internal reporting 10 Elections 8 Government grants 8 Cash handling/credit card management 6 Dismissal 5 Secondary employment 2 Allocation of paid hours 1 e-corruption/IT security 1 Post-separation employment 1
Note: Multiple categories apply to some section 10 complaints.
Chapter 8: Appendices 103 Table 25: Section 10 complaints received during 2006–07 showing types of corrupt conduct
No. of times Conduct alleged recorded Unspecified/other 227 Breach of policy or procedure 121 Collusion 106 Favouritism/nepotism 104 Fabricate/falsify info/forgery/fraud/tamper info 76 Harassment/victimisation/discrimination 72 Failure to take action/negligence 70 Bribery/gift/secret commission 69 Failure to disclose/abuse of conflict of interest 68 Misuse/theft of resource by public official 56 Lack of accountability 35 Improper use of information 27 Pervert course of justice/tamper evidence/perjury 26 Threats/extortion/blackmail/undue influence 23 Failure to advertise appropriately, e.g. contracts 22 Assault/sexual assault/misconduct/harassment 20 Drug/alcohol traffic/use 7
Note: Multiple categories apply to some section 10 complaints.
Table 26: Protected disclosures received during 2006–07 by government sector
Sector No. of times recorded % Local government 64 26.8 Health 44 18.4 Custodial services 25 10.5 Education (except universities) 20 8.4 Transport, ports & waterways 19 8.0 Community & human services 13 5.4 Government & financial services 13 5.4 Law & justice 7 2.9 Aboriginal affairs & services 6 2.5 Universities 6 2.5 Natural resources & environment 5 2.0 Consumer & trade 3 1.3 Emergency services 3 1.3 Land, property & planning 3 1.3 Policing 3 1.3 Arts & heritage 2 0.8 Energy 1 0.4 Other – unspecified 1 0.4 Tourism, sport, recreation & gaming 1 0.4 Employment & industrial relations 0 0.0 Parliament 0 0.0
104 ICAC Annual Report 2006–2007 Table 27: Protected disclosures received during 2006–07 showing types of workplace activities
No. of times Workplace activity recorded
Employment practices 70 Unspecified/other 35 Codes of conduct 21 Purchase of goods & services/tendering/contracting 20 Staff management 19 Use of public resources 14 Building & development applications/rezoning 13 Disposal of public assets/tendering/contracting 10 Internal reporting 10 Law enforcement 6 Allocation of paid hours 3 Cash handling/credit card management 3 Elections 3 Allocation of public goods & services 2 Use of confidential information 2 Dismissal 1 e-corruption/IT security 1 Law enforcement – courts/tribunals 1 Secondary employment 1
Table 28: Protected disclosure allegations received during 2006–07 showing types of corrupt conduct
No. of times Conduct alleged recorded Breach of policy or procedure 57 Favouritism/nepotism 53 Unspecified/other 40 Failure to disclose/abuse of conflict of interest 37 Misuse/theft of resources by public official 32 Harassment/victimisation/discrimination 26 Collusion 25 Failure to take action/negligence 24 Bribery/gift/secret commission 21 Fabricate/falsify info/forgery/fraud/tamper info 20 Failure to advertise appropriately, e.g. contracts 12 Improper use of information 7 Assault/sexual assault/misconduct/harassment 6 Lack of accountability 4 Threats/extortion/blackmail/undue influence 4 Pervert course of justice/tamper evidence/perjury 2 Drug/alcohol traffic/use 1
Chapter 8: Appendices 105 Table 29: Section 11 reports received during 2006–07 by sector
No. of times Sector recorded %
Local government 149 24.2 Custodial services 115 18.7 Health 83 13.5 Transport, ports & waterways 43 7.0 Universities 37 6.0 Community & human services 29 4.7 Natural resources & environment 25 4.1 Education (except universities) 23 3.7 Law & justice 23 3.7 Energy 20 3.3 Government & financial services 18 2.9 Aboriginal affairs & services 16 2.6 Land, property & planning 11 1.8 Policing 8 1.3 Tourism, sport, recreation & gaming 7 1.1 Emergency services 3 0.5 Employment & industrial relations 1 0.3 Arts & heritage 1 0.2 Consumer & trade 1 0.2 Parliament 1 0.2
106 ICAC Annual Report 2006–2007 Table 30: Section 11 reports received during 2006–07 showing types of workplace activities
No. of times Workplace activity recorded Codes of conduct 117 Other/unspecified 108 Employment practices 55 Use of public resources 40 Building & development applications/rezoning 32 Cash handling/credit card management 30 Purchase of goods & services/tendering/contracting 29 Licensing/qualifications/certificates/regulations 22 Use of confidential information 20 Disposal of public assets/tendering/contracting 19 Law enforcement 17 Internal reporting 16 Secondary employment 14 Allocation of public goods & services 13 e-corruption/IT security 13 Staff management 12 Allocation of paid hours 8 Law enforcement – courts/tribunals 8 Elections 3 Government grants 2 Dismissal 1 Post-separation employment 1
Table 31: Section 11 reports received during 2006–07 showing types of corrupt conduct alleged
No. of times Conduct alleged recorded Unspecified/other 128 Breach of policy or procedure 113 Misuse/theft of resources by public official 105 Fabricate/falsify info/forgery/fraud/tamper info 105 Bribery/gift/secret commission 62 Assault/sexual assault/misconduct/harassment 50 Harassment/victimisation/discrimination 45 Collusion 41 Failure to disclose/abuse of conflict of interest 40 Drug/alcohol traffic/use 35 Improper use of information 34 Favouritism/nepotism 33 Failure to take action/negligence 28 Lack of accountability 13 Threats/extortion/blackmail/undue influence 9 Pervert course of justice/tamper evidence/perjury 8 Failure to advertise appropriately, e.g. contracts 3
Chapter 8: Appendices 107 APPENDIX 2: STATUTORY REPORTING Table 32: Reports under section 76(2)(ba)
Section Reporting requirement Result
76(2)(ba)(i) Time interval between the lodging of each complaint and the Commission deciding to investigate see Table 33 for details the complaint 76(2)(ba)(ii) Number of complaints where investigations commenced but were not finalised during the year 12 76(2)(ba)(iii) Average time taken to deal with complaints 103 days Actual time taken to investigate any matter in respect of which a report is made see Table 34 for details 76(2)(ba)(iv) Total number of compulsory examinations conducted during the year 49 Total number of public inquiries conducted during the year 4 76(2)(ba)(v) Number of days spent during the year in conducting public inquiries 24 76(2)(ba)(vi) Time interval between the completion of each public inquiry conducted during the year and the see Table 35 for details forward of a report on the matter
Table 33: Time interval between the lodging of each complaint and the Commission deciding to investigate the complaint [76(2)(ba)(i)]
Date received Date of decision to investigate Time interval (days) 31 July 2006 3 Aug. 2006 3 1 Aug. 2006 3 Aug. 2006 2 16 Aug. 2006 22 Aug. 2006 6 16 Aug. 2006 22 Aug.2006 6 24 Aug. 2006 14 Nov. 2006 82 31 Aug. 2006 5 Sept. 2006 5 19 Sept. 2006 21 Sept. 2006 2 22 Sept. 2006 26 Sept. 2006 4 17 Nov. 2006 5 Dec. 2006 18 9 Mar. 2007 20 Mar. 2007 11 7 July 2006 24 Oct. 2006 109 16 Aug. 2006 7 Sept. 2006 22 16 Aug. 2006 7 Sept. 2006 22 25 Aug. 2006 5 Oct. 2006 41 28 Aug. 2006 31 Aug. 2006 3 5 Sept. 2006 24 Oct. 2006 49 26 Oct. 2006 31 Oct. 2006 5 8 Nov. 2006 7 Dec. 2006 29 28 Nov. 2006 27 Mar. 2007 119 15 Jan. 2007 23 Jan. 2007 8 17 Jan. 2007 23 Jan. 2007 6 29 Jan. 2007 22 Feb. 2007 24 5 Mar. 2007 19 June 2007 106 6 Mar. 2007 5 June 2007 91 14 Mar. 2007 19 Apr. 2007 36 27 Mar. 2007 5 June 2007 70 2 Apr. 2007 17 May 2007 45 17 May 2007 24 May 2007 7 1 June 2007 5 June 2007 4 23 May 2007 31 May 2007 8
108 ICAC Annual Report 2006–2007 Table 34: Actual time taken to investigate any matter in respect of which a report is made [76(2)(ba)(iii)]
Investigation classification Date received Date completed Days taken to investigate Investigation 27 June 2005 6 Mar. 2007 617 Investigation 25 July 2005 12 Dec. 2006 505 Investigation 12 Sept. 2005 1Aug. 2006 323 Investigation 11 Apr. 2006 8 May 2007 392 Preliminary investigation 21 Mar. 2006 1 Aug. 2006 133 Preliminary investigation 23 Mar. 2006 26 Sept. 2006 187 Preliminary investigation 3 Apr. 2006 1 Aug. 2006 120 Preliminary investigation 11 Apr. 2006 1 Aug. 2006 112 Preliminary investigation 21 Apr. 2006 26 Sept. 2006 158 Preliminary investigation 5 May 2006 6 Mar. 2007 305 Preliminary investigation 15 May 2006 27 Nov. 2006 196 Preliminary investigation 10 July 2006 30 Aug. 2006 51 Preliminary investigation 17 July 2006 8 May 2007 295 Preliminary investigation 19 July 2006 26 Sept. 2006 69 Preliminary investigation 1 Aug. 2006 6 Feb. 2007 189 Preliminary investigation 29 Aug. 2006 6 Mar. 2007 189 Preliminary investigation 4 Sept. 2006 26 Sept. 2006 22 Preliminary investigation 4 Sept. 2006 23 Jan. 2007 141 Preliminary investigation 27 Sept. 2006 6 Mar. 2007 160 Preliminary investigation 29 Sept. 2006 6 Feb. 2007 130 Preliminary investigation 18 Oct. 2006 23 Jan. 2007 97 Preliminary investigation 8 Nov. 2006 12 Dec. 2006 34 Preliminary investigation 10 Nov. 2006 6 Mar. 2007 116 Preliminary investigation 15 Nov. 2006 8 Mar. 2007 174 Preliminary investigation 28 Nov. 2006 11 Apr. 2007 134 Preliminary investigation 7 Mar. 2007 8 May 2007 62
Table 35: Time interval between the completion of each public inquiry and the issuing of a report
Public inquiry Date public Date investigation Time interval inquiry report tabled (days) completed * Report on investigation into sale of surplus public housing properties 5 Apr. 2006 26 Oct. 2006 204 (Operation Aztec) Report on investigation into the case management and administration of 18 May 2006 20 Sept. 2006 125 community service orders (Operation Cadmus) Report on investigation into defrauding the RTA and RailCorp in relation to 30 Oct. 2006 21 Dec. 2006 52 provision of traffic management services (Operation Quilla) Report on an investigation into corrupt conduct associated with RailCorp air- 2 Feb. 2007 18 June 2007 136 conditioning contracts (Operation Persis)
* The ICAC considers a public inquiry to be completed as at the date of receipt of final submissions from parties who are granted leave to appear at the public inquiry.
Chapter 8: Appendices 109 APPENDIX 3: PROSECUTIONS AND DISCIPLINARY ACTIONS IN 2006–07 ARISING FROM ICAC INVESTIGATIONS Table 36: Prosecution proceedings during 2006–07 The date next to the investigation name is the date the investigation report was published. Investigation into aspects of the greyhound racing industry (Operation Muffat) August 2000
Name Ronald Henry Gill Offences recommended for s.249B Crimes Act 1900 (corrupt rewards); s.87 ICAC Act 1988 (false or misleading evidence). Director of Public Prosecutions (DPP) consideration DPP advice On 26 September 2005 DPP advised sufficient admissible evidence to proceed with 7 offences under s.249B Crimes Act 1900 and 4 offences under s.87 ICAC Act 1988. Status Convicted on 8 September 2006 and sentenced to 2 years 2 months imprisonment with non-parole period of 15 months and fined $5,000.
Name Kenneth Edward Howe Offences recommended for DPP s.249B Crimes Act 1900 (corrupt rewards); ss.10 & 29 Drug Misuse and Trafficking Act 1985 consideration (possession of prohibited drugs). DPP advice On 26 September 2005 DPP advised sufficient admissible evidence to proceed with 3 offences under s.249B Crimes Act 1900. Status Convicted 6 February 2007 and sentenced to 12 months imprisonment suspended on condition enter into good behaviour bond and fined $6,000.
Name Andrea Sarcasmo Offences recommended for DPP s.249B Crimes Act 1900 (corrupt rewards); s.87 ICAC Act 1988 (false or misleading evidence). consideration DPP advice On 26 September 2005 DPP advised sufficient admissible evidence to proceed with 5 offences under s.249B Crimes Act 1900 and 1 offence under s.87 ICAC Act 1988. Status Convicted 11 July 2006 and sentenced to 12 months imprisonment suspended on condition enter into good behaviour bond and fined $5,000.
Investigation into the conduct of Rockdale City Council Councillors and others (Operation Trophy) July 2002
Name Adam McCormick Offences recommended for DPP s.249B(1) Crimes Act 1900 (corruptly solicit/receive payments or conspiracy to commit bribery); s.87 consideration ICAC Act 1988 (false or misleading evidence). DPP advice In July 2004 and November 2004 DPP advised sufficient admissible evidence to proceed with 2 offences under s.249B Crimes Act 1900 and 12 offences under s.87 ICAC Act 1988. Status On 31 October 2005 found guilty on all matters. On 16 December 2005 sentenced to 5 years imprisonment with 3 year non-parole period. On 15 September 2006 appealed conviction and sentence. On 28 March 2007 appeal dismissed.
Investigation into the conduct of certain senior officers of the NSW Grains Board (Operation Agnelli) August 2003
Name Graham Lawrence Offences recommended for DPP s.176 Crimes Act 1900 (director or officer publishing fraudulent statements). consideration DPP advice Further DPP requisitions received on 27 February 2007. Status Obtaining additional material in answer to DPP requisitions.
110 ICAC Annual Report 2006–2007 Name John Fitzgerald Offences recommended for DPP s.176 Crimes Act 1900 (director or officer publishing fraudulent statements). consideration DPP advice Further DPP requisitions received on 27 February 2007. Status Obtaining additional material in answer to DPP requisitions.
Name Darren Bizzell Offences recommended for DPP s.156 Crimes Act 1900 (larceny by a servant); s.178BA Crimes Act 1900 (obtaining money by consideration deception); s.178BB Crimes Act 1900 (obtaining money by false or misleading statement). DPP advice On 25 August 2006 DPP advised no basis on which charge could be recommended. Status Finalised.
Investigation into the theft of zoological specimens from the Australian Museum (Operation Savoy) September 2003
Name Hendrikus (Hank) Van Leeuwen Offences recommended for DPP s. 156 Crimes Act 1900 (larceny as a servant). consideration DPP advice In May 2004 DPP advised sufficient admissible evidence to proceed with 199 offences under s.156 Crimes Act 1900 and 36 offences under s.188 Crimes Act 1900 (dispose of stolen property). Status On 20 April 2007 convicted and sentenced to 7 years imprisonment with non-parole period of 5 years.
Investigation into the awarding of contracts by officers of Integral Energy (Operation Grenache) September 2003
Name Dennis Neville Hall Offences recommended for DPP s.178A Crimes Act (fraudulent misappropriation). consideration DPP advice On 15 December 2005 DPP advised sufficient admissible evidence to proceed with 19 offences under s.157 Crimes Act 1900 (embezzlement). Status On 11 December 2006 convicted and sentenced to 2½ years imprisonment.
Investigation into applications made to Dept of Fair Trading for builders and trade licences (Operation Squirrel) November 2003
Name Tony Sassine Offences recommended for DPP s.178B Crimes Act 1900 (obtaining benefit by deception); s.301(1) and 301(2) of the Crimes Act consideration 1900 (make and use false instrument); s.87 ICAC Act 1988 (give false and/or misleading evidence). DPP advice On 11 March 2005 DPP advised sufficient admissible evidence to proceed with 4 offences under s.178BA Crimes Act 1900 and 15 offences under s.301(2) Crimes Act 1900. On 30 October 2006 DPP decided not to proceed with offences under s.301(2) Crimes Act 1900. Status On 30 October 2006 convicted and sentenced to 200 hours of community service orders.
Name Raymond Khalifeh Offences recommended for DPP Nil in report. Brief for offences under s.87 ICAC Act 1988 (false or misleading evidence) consideration subsequently provided to DPP. DPP advice On 11 March 2005 DPP advised sufficient admissible evidence to proceed with 3 offences under s.87 ICAC Act 1988. Status On 27 July 2006 convicted and sentenced to 12 months imprisonment with non-parole period of 9 months suspended on condition enter into good behaviour bond.
Chapter 8: Appendices 111 Investigation into safety certification and training in the NSW construction industry (Operation Cassandra) June 2004
Name Armando Fassone Offences recommended for DPP s.178BB Crimes Act 1900 (obtain money by false or misleading statement). consideration DPP advice On 5 January 2006 DPP advised sufficient admissible evidence to proceed with 9 offences under s.178BB Crimes Act 1900. Status On 4 October 2006 application for stay of proceedings upheld.
Name Alan Fizelle Offences recommended for DPP s.178BB Crimes Act 1900 (obtain money by false or misleading statement). consideration DPP advice On 5 January 2006 DPP advised sufficient admissible evidence to proceed with 36 offences under s.178BB Crimes Act 1900. Status On 13 October 2006 convicted and placed on good behaviour bond.
Name John Webb Offences recommended for DPP s.178BB Crimes Act 1900 (obtain money by false or misleading statement. consideration DPP advice On 5 January 2006 DPP advised sufficient admissible evidence to proceed with 19 offences under s.178BB Crimes Act 1900. Status On 12 September 2006 convicted and placed on good behaviour bond.
Name Alexander Dougall Offences recommended for DPP s.178BB Crimes Act 1900 (obtain money by false or misleading statement); s.87 ICAC Act 1988 (false consideration or misleading evidence). DPP advice On 5 January 2006 DPP advised sufficient admissible evidence to proceed with 5 offences under s.178BB Crimes Act 1900 (1 charge subsequently withdrawn by DPP) and 1 offence under s.87 ICAC Act 1988. Status On 31 October 2006 convicted and sentenced to 6 months imprisonment, suspended.
Name Andrew Williams Offences recommended for DPP s.178BB Crimes Act 1900 (obtain money by false or misleading statement). consideration DPP advice On 5 January 2006 DPP advised sufficient admissible evidence to proceed with 5 offences under s.178BB Crimes Act 1900. Status On 9 November 2006 convicted and fined $1,000.
Name Raymond Anthony Offences recommended for DPP s.178BB Crimes Act 1900 (obtain money by false or misleading statement); s.87 ICAC Act 1988 (false consideration or misleading evidence). DPP advice On 5 January 2006 DPP advised sufficient admissible evidence to proceed with 1 offence under s.178BB Crimes Act 1900 and 1 offence under s.87 ICAC Act 1988. Status On 30 April 2007 convicted of s.87 offence and sentenced to 7 months imprisonment, suspended. Other offences withdrawn by DPP.
Name Terry Whyte Offences recommended for DPP s.87 ICAC Act 1988 (false or misleading evidence). consideration DPP advice On 5 January 2006 DPP advised sufficient admissible evidence to proceed with 1 offence under s.87 ICAC Act 1988. Status On 9 February 2007 acquitted.
112 ICAC Annual Report 2006–2007 Investigation into certain transactions of Koompahtoo Local Aboriginal Land Council (Operation Unicorn) April 2005
Name Bill Smith Offences recommended for DPP s.249B Crimes Act 1900 (corrupt rewards); s.178BB Crimes Act 1900 (obtain money by false or consideration misleading statement). DPP advice Requisitions received on 29 August 2006. Status Obtaining additional information in response to DPP requisitions.
Name Adam Perkins Offences recommended for DPP s.249F Crimes Act 1900 (aiding, abetting etc corrupt rewards). consideration DPP advice Status Awaiting DPP advice.
Name Bob Scott Offences recommended for DPP s.249F Crimes Act 1900 (aiding, abetting etc corrupt rewards). consideration DPP advice Status Awaiting DPP advice.
Name Kim Wilson Offences recommended for DPP s.249F Crimes Act 1900 (aiding, abetting etc corrupt rewards). consideration DPP advice Status Awaiting DPP advice.
Name Dale Holt Offences recommended for DPP s.249F Crimes Act 1900 (aiding, abetting etc corrupt rewards). consideration DPP advice Status Awaiting DPP advice.
Name Stephen Griffen Offences recommended for DPP s.178BB Crimes Act 1900 (obtain money by false or misleading statement). consideration DPP advice Requisitions received on 29 August 2006. Status Obtaining additional information in response to DPP requisitions.
Investigation into relationship between certain Strathfield Councillors and developers (Operation Cordoba) June 2005
Name John Abi-Saab Offences recommended for DPP s.100A Crimes Act 1900(blackmail by threat to publish); s.87 ICAC Act 1988 (give false/misleading consideration evidence); s.80(c) ICAC Act 1988 (wilfully make false statement); s.89 ICAC Act 1988 (procure false testimony); s.112 ICAC Act 1988 (breach of suppression order). DPP advice On 28 February 2005 DPP advised sufficient admissible evidence to proceed with 2 offences under s.112 ICAC Act 1988. On 3 February 2006 DPP advised sufficient admissible evidence to proceed with 1 offence under s.89 ICAC Act 1988. On 21 November 2006 DPP advised sufficient admissible evidence to proceed with 5 offences under s.80(c) ICAC Act 1988, 6 offences under s.87 ICAC Act 1988 and 1 offence under s.100A Crimes Act 1900. Status On 19 January 2006 convicted and fined $2,000 for each s.112 offence. Proceedings current on other matters.
Chapter 8: Appendices 113 Name Anne Bechara Offences recommended for DPP s.87 ICAC Act 1988 (give false/misleading evidence); s.89 ICAC Act 1988 (procure false testimony). consideration DPP advice On 3 February 2006 DPP advised sufficient admissible evidence to proceed with 1 offence under s.89 ICAC Act 1988. On 16 February 2006 DPP advised sufficient admissible evidence to proceed with 11 offences under s.87 ICAC Act 1988. Status Convicted on 19 December 2006 of 11 offences under s.87 ICAC Act 1988 and sentenced to 4 months imprisonment to be served as home detention. DPP did not proceed with s.89 matter.
Name Scott Allman Offences recommended for DPP s.5 Listening Devices Act 1984 (use of a listening device). consideration DPP advice On 20 July 2006 DPP advised sufficient evidence to proceed with offence under s.5 Listening Devices Act 1984. Status On 21 November 2006 DPP withdrew prosecution.
Name Alfred Tsang Offences recommended for DPP s.249B Crimes Act 1900 (corrupt rewards). consideration DPP advice On 28 August 2006 DPP advised sufficient evidence to proceed with 2 offences under s.249B Crimes Act 1900. Status Proceedings current.
Name Michael Saklaoui Offences recommended for DPP s.249B Crimes Act 1900 (corrupt rewards), s.100 A Crimes Act 1900 (blackmail); s.5 Listening consideration Devices Act 1984 (use of a listening device). DPP advice On 20 July 2006 DPP advised sufficient evidence to proceed with 1 offence under s.5 Listening Devices Act 1984. On 17 and 21 November 2006 DPP advised insufficient evidence to proceed with other offences. Status On 21 November 2006 DPP withdrew prosecution under s.5 Listening Devices Act 1984.
Investigation into safety certification and the operations of the WorkCover NSW Licensing Unit (Operation Cassowary) December 2005 Recommendations were made in this report that consideration be given to obtaining the advice of the DPP with respect to the prosecution of 18 named individuals for various criminal offences. Briefs of evidence in relation to all matters are being completed.
Investigation into schemes to fraudulently obtain building licences (Operation Ambrosia) December 2005* Name Raymond Khalifeh Offences recommended for DPP s.178BA Crimes Act 1900 (obtaining valuable thing by deception); s.300(2) Crimes Act 1900 (using a consideration false instrument); s.307A Crimes Act 1900 (making false statement to public authority). DPP advice On 26 April 2006 DPP advised sufficient admissible evidence to proceed with 3 offences under s.178BA Crimes Act 1900 and 5 offences under s.87 ICAC Act 1988 (false evidence). Status On 27 July 2006 convicted on all offences and sentenced to 12 months imprisonment with 9 months non-parole period for s.87 offences and 300 hours community service orders for s.178BA offence.
Name Faraj Harb Offences recommended for DPP Conspiracy to pervert the course of justice. consideration DPP advice On 11 December 2006 DPP advised that due to death of a witness matter should not proceed. Status Completed. * Briefs of evidence in relation to an additional 35 persons have either been sent to the DPP or are being prepared.
114 ICAC Annual Report 2006–2007 Investigation into the conduct of an officer of the Local Court Registry at Penrith (Operation Hunter) February 2006 Name Joseph Ghanem Offences recommended for DPP s.178 BA Crimes Act 1900 (obtaining valuable thing by deception); s.90 ICAC Act 1988 (bribery of consideration witness). DPP advice On 29 March 2006 DPP advised sufficient evidence to proceed with offences under s.178 BA Crimes Act 1900, s.90 ICAC Act 1988 and s.112 ICAC Act 1988 (breach of suppression order). Status On 14 September 2006 convicted of all offences and sentenced to 6 months imprisonment for s.112 offence, 12 months imprisonment for s.90 offence and 6 months for s.178BA offence and ordered to pay $18,000 compensation. On 17 January 2007, on appeal, convictions confirmed but all sentences suspended upon entering into good behaviour bond and restitution of $18,000.
Name Faraj Harb Offences recommended for DPP s.178 BA Crimes Act 1900 (obtaining valuable thing by deception) consideration DPP advice On 11 December 2006 DPP advised sufficient admissible evidence to proceed with 2 offences under s.178 BA Crimes Act 1900 and 1 offence under s.178BB Crimes Act 1900 (make false statement with intent to deceive). Status Proceedings current.
Investigation into the cover-up of an assault on an inmate at Parramatta Correctional Centre Penrith (Operation Inca) June 2006 Name Jeffrey Strange Offences recommended for DPP s.319 Crimes Act 1900 (pervert the course of justice), s.80(c) ICAC Act 1988 (wilfully make false consideration statement); s.87 ICAC Act (false evidence). DPP advice On 26 April 2007 DPP advised sufficient evidence to proceed with 2 offences under s.80(c) ICAC Act 1988 and 2 offences under s.87 ICAC Act 1988. Status Proceedings current.
Name Shannon Wade Offences recommended for DPP s.87 ICAC Act (false evidence). consideration DPP advice On 26 April 2007 DPP advised sufficient evidence to proceed with 1 offence under s.80(c) ICAC Act 1988 and 1 offence under s.87 ICAC Act 1988. Status Proceedings current.
Investigation into the case management and administration of community service orders (Operation Cadmus) September 2006 Name Hicham (Michael) Ishac Offences recommended for DPP s.319 Crimes Act 1900 (pervert the course of justice);s.308H Crimes Act 1900 (unauthorised access consideration to data); s.87 ICAC Act (false evidence). DPP advice On13 June 2006 DPP advised sufficient evidence to proceed with 6 offences under s.319 Crimes Act 1900. Status On 15 January 2007 convicted of 6 offences under s.319 Crimes Act 1900 and placed on 1-year good behaviour bond. Recommendations were made in this report that consideration be given to obtaining the advice of the DPP with respect to the prosecution of six other named individuals for various criminal offences. Briefs of evidence in relation to all matters are being completed for the DPP.
Investigation into sale of surplus public housing properties (Operation Aztec) October 2006 Recommendations were made in this report that consideration be given to obtaining the advice of the DPP with respect to the prosecution of three named individuals for various criminal offences. Briefs of evidence in relation to all matters are being completed for the DPP.
Chapter 8: Appendices 115 Investigation into defrauding the RTA and RailCorp in relation to the provision of traffic management services (Operation Quilla) December 2006 Recommendations were made in this report that consideration be given to obtaining the advice of the DPP with respect to the prosecution of two named individuals for various criminal offences. Briefs of evidence in relation to all matters are being completed for the DPP.
Investigation into corrupt conduct associated with RailCorp airconditioning contracts (Operation Persis) June 2007 Recommendations were made in this report that consideration be given to obtaining the advice of the DPP with respect to the prosecution of four named individuals for various criminal offences. Briefs of evidence in relation to all matters are being completed for the DPP.
Table 37: Disciplinary proceedings during 2006–07 Investigation into the cover-up of an assault on an inmate at Parramatta Correctional Centre Penrith (Operation Inca) June 2006 Name Jeffrey Strange ICAC recommendation Consideration of disciplinary action under Part 2.7 of Public Sector Employment & Management Act 2002 for engaging in misconduct. Status Suspended (without pay) awaiting outcome of prosecution proceedings.
Investigation into the case management and administration of community service orders (Operation Cadmus) September 2006 Name Hicham (Michael) Ishac ICAC recommendation Consideration of disciplinary action. Status Dismissed.
Investigation into corrupt conduct associated with RailCorp airconditioning contracts (Operation Persis) June 2007 Name Said Marcos ICAC recommendation Consideration of disciplinary action. Status Dismissed.
116 ICAC Annual Report 2006–2007 APPENDIX 4: IMPLEMENTATION OF RECOMMENDATIONS FOR REFORM ARISING FROM ICAC INVESTIGATIONS
Where the Commission makes corruption prevention recommendations to an agency in an ICAC investigation report, the agency is asked to report to the ICAC on the implementation of these recommendations. Table 38 shows the information received from agencies in 2006–07, including the number and percentage of recommendations that agencies have addressed. A recommendation is considered to have been addressed when it has either been implemented, action is being taken to implement it, or the agency has considered the recommendation and found an alternative way of addressing the issue. Table 38: Progress reports received in 2006–07
Last progress Agency responsible No. of % Investigation report report for implementation recommendations No. addressed addressed Report on a cover-up of an assault of an Dept of Corrective inmate at Parramatta Correctional Centre June 2007 Services 16 6 38 Investigation into the conduct of an officer of Attorney General’s the local court registry in Penrith Mar. 2007 Dept 12 10 83 Investigation into safety certification and the operations of the WorkCover NSW Licensing Unit Dec. 2006 WorkCover NSW 19 19 100 Investigation into schemes to fraudulently TAFE obtain building licences VETAB Office of Fair Trading Jan. 2007 Minister for Education 24 23 96 Investigation into planning decision relating to Dept of Planning 3 3 100 the Orange Grove Centre Oct. 2006 NSW Government Investigation into the University of Newcastle’s University of 5 5 100 handling of plagiarism allegations Sept. 2006 Newcastle Investigation into certain transactions of Dept of Aboriginal Koompahtoo Local Aboriginal Land Council May 2007 Affairs 7 7 100 Investigation into the conduct of the Hon Peter Breen MLC Feb. 2007 Legislative Council 10 10 100 Report under section 14(2) of the Independent Commission Against Corruption Act 1988 to University of Sydney the Minsiter for Education and Training Nov. 2006 University of NSW 10 10 100 Investigation into the introduction of contraband into the Metropolitan Remand and Dept of Corrective Reception Centre, Silverwater Nov. 2006 Services 5 5 100 Investigation into the conduct of the Hon Legislative Assembly Richard Face MP Sept. 2006 NSW Government 9 9 100 Investigation into safety certification and training in the NSW construction industry Oct. 2006 WorkCover NSW 14 13 93 Investigation into the handling of applications for public housing by an officer of the Dept of Housing Oct. 2006 Dept of Housing 16 16 100
Chapter 8: Appendices 117 APPENDIX 5: THE ICAC AND LITIGATION Case 2 (Administrative Decisions Tribunal)
In June 2006 the ICAC received a request for access The ICAC has been involved in three matters that have to a report made to its then Operations Review been the subject of litigation. Committee. The request was made under the Case 1 (Administrative Decisions Tribunal provisions of the FOI Act. and Supreme Court) The request was rejected on the basis that the ICAC is In June 2005 the ICAC received a request for access exempt from the provisions of the FOI Act in relation to a report made to its then Operations Review to its complaint handling and investigative functions and Committee. The request was made under the Freedom that the report related to these functions. of Information Act 1989 (the FOI Act). In August 2006 the applicant brought proceedings in the The FOI Act provides that the ICAC is exempt Administrative Decisions Tribunal seeking a review of from the provisions of the FOI Act in relation to its the ICAC’s decision to not grant access to the report. complaint handling and investigative functions. The The proceedings were adjourned until determination of report clearly related to these functions. In these the ICAC’s Supreme Court appeal referred to in Case circumstances the request was denied. 1 above.
In August 2005 the applicant brought proceedings in the On 18 July 2007, after determination of the ICAC’s Administrative Decisions Tribunal seeking a review of Supreme Court appeal, the application was dismissed by the ICAC’s decision to not grant access to the report. the Tribunal. On 20 January 2006 the Tribunal ruled that, as the ICAC was exempt from the provisions of the FOI Act Case 3 (Administrative Decisions Tribunal) in relation to its complaint handling and investigative In July 2006 the ICAC received a request for access to functions, the Tribunal had no jurisdiction to hear or all documents relating to complaints of corrupt conduct determine the application. made by the applicant, including internal ICAC working documents. The request was made under the provisions The applicant subsequently appealed this ruling to the of the FOI Act. Tribunal’s Appeal Panel. On 16 April 2006 the Appeal Panel set aside the earlier decision of the Tribunal and ordered that: The request was rejected on the basis that the ICAC is exempt from the provisions of the FOI Act in relation 1. The Tribunal has jurisdiction to review a to its complaint handling and investigative functions determination by the ICAC not to give access to and that the documents requested related to these the report. functions. 2. The matter be remitted to the Tribunal for reconsideration in accordance with the Appeal In August 2006 the applicant brought proceedings in Panel’s finding. the Administrative Decisions Tribunal seeking a review of the ICAC’s decision to not grant access to the Operations Review Committee report. The proceedings After considering the Appeal Panel’s decision the ICAC were adjourned until determination of the ICAC’s appealed to the Supreme Court. Supreme Court appeal referred to in Case 1 above. The appeal was heard on 19 February 2007. Judgement On 20 March 2007, after determination of the ICAC’s on 2 March 2007 was in favour of the ICAC. The Supreme Court appeal, the applicant withdrew the judgement set aside the orders made by the Appeal Tribunal application. Panel and restored the earlier orders made by the Tribunal. The ICAC made an application for costs which is yet to be determined.
118 ICAC Annual Report 2006–2007 APPENDIX 6: LEGAL CHANGE APPENDIX 8: PRIVACY AND PERSONAL INFORMATION There were no amendments to the Independent Commission Against Corruption Act 1988 in the reporting The Privacy and Personal Information Protection Act 1998 period. provides for the protection of personal information and the privacy of individuals generally. The Act There were a number of amendments to the establishes a number of information protection Telecommunications (Interception & Access) Act 1979 that principles. These principles only apply to the ICAC affected the ICAC. These included changes to some of in connection with its exercise of administrative and the terminology used in that Act and to the procedures educative functions. for implementation of warrants granted under that Act. In accordance with the Act, the ICAC developed The Law Enforcement (Controlled Operations) Act 1997 a privacy management plan. The ICAC operated in was amended to increase the scope for retrospective accordance with this plan during 2006–07. authorisation of controlled activities. Part 5 of the Act allows a person who is aggrieved APPENDIX 7: COMPLAINTS AGAINST by certain conduct of a public sector agency to seek ICAC OFFICERS review of that conduct. The relevant conduct is:
The ICAC Act provides for the appointment of an (a) the contravention by a public sector agency of Inspector of the ICAC. The functions of the Inspector an information protection principle that applies include dealing with: to the agency complaints of abuse of power, impropriety and (b) the contravention by a public sector agency of other forms of misconduct on the part of the a privacy code of practice that applies to the ICAC or officers of the ICAC agency conduct amounting to maladministration (including, without limitation, delay in the conduct (c) the disclosure by a public sector agency of of investigations and unreasonable invasions of personal information kept in a public register. privacy) by the ICAC or officers of the ICAC. No reviews have been required or conducted under Accordingly, people who wish to complain about the conduct of an ICAC officer may now do so to the Part 5 of the Act during the reporting year. Inspector or to the ICAC. APPENDIX 9: STATEMENT OF AFFAIRS In September 2005, the ICAC entered into a memorandum of understanding with the Inspector. The Each agency covered by the Freedom of Information memorandum provides that the ICAC will notify the Act 1989 (FOI Act) is required to publish an annual Inspector of complaints against ICAC officers it receives statement of affairs. that come within the Inspector’s functions. The Inspector may decide to investigate matters directly or ask the The ICAC’s administrative, research and education ICAC to undertake the investigation and report its roles are covered by the FOI Act, but its corruption findings to the Inspector. prevention, complaint handling, investigative and report functions are exempt. The ICAC received five complaints about ICAC staff in 2006–07, four from external sources and one from The ICAC is committed to public awareness and an internal source. All were handled internally, three involvement in its activities. General enquiries — either by the Solicitor to the Commission, one by the Deputy by post, telephone, email or visit — are welcome. If an Commissioner and Solicitor to the Commission, and enquiry cannot be satisfied through such contact, then one by an ICAC lawyer. All five matters were finalised a formal application can be made to the Solicitor to the in the reporting period. Commission who is the ICAC’s FOI officer. No instances of misconduct were found. The Inspector Contact details for the ICAC are shown at the front of was notified of all matters. this annual report.
Chapter 8: Appendices 119 Freedom of information procedures maladministration, and assess the effectiveness and appropriateness of the ICAC’s procedures relating to Arrangements can be made to obtain or inspect copies the legality or propriety of its activities. of available documents at the ICAC by contacting the Solicitor to the Commission. Formal requests made Members of the public can also make comments under the FOI Act for access to documents should directly to the ICAC by writing to the Commissioner. be sent to the Solicitor to the Commission and accompanied by a $30 application fee. People wishing Documents held by the ICAC to be considered for a reduction in fees should set out reasons in their applications. Those holding a current The categories of ICAC documents covered by the FOI health care card are eligible for a 50 per cent reduction. Act include: research reports Structure and functions administrative policy documents, such as The ICAC’s organisational structure is shown in personnel policies Appendix 15. The ICAC’s main functions are to general administration documents, such as investigate allegations of corruption, prevent corruption accounts and staff records. and educate the public about corruption issues. These functions are described comprehensively in the body of Members of the public can contact the Solicitor to the annual report. the Commission to clarify which documents may be Effect of functions on the public and available. arrangements for public participation All ICAC publications produced in 2006–07 are listed The public can participate directly in the ICAC’s work in Appendix 12. They include investigation reports, by providing information about suspected corrupt corruption prevention reports and educational material. conduct involving or affecting the NSW public sector. The ICAC also publishes brochures about its activities Members of the public can provide this information by and procedures. telephone, letter, email or personal visit. APPENDIX 10: FREEDOM OF Members of the public can attend and observe the INFORMATION ICAC’s public inquiries. These are advertised in metropolitan newspapers for public inquiries conducted Freedom of information requests in 2006–07 in Sydney and metropolitan and regional or country newspapers for public inquiries outside Sydney. Section A: Numbers of new FOI requests – information about the numbers of new FOI requests Reports on ICAC investigations and transcripts and received, those processed, and those incomplete from documentary evidence from most public inquiries are the previous period. available on the ICAC’s website: www.icac.nsw.gov.au. FOI requests Personal Other Total A1 New (including transferred in) 0 5 5 The ICAC is accountable to the public through A2 Brought forward 0 0 0 Parliament – specifically the Parliamentary Joint Committee on the ICAC. The functions and A3 Total to be processed 0 5 5 membership of this committee are described in A4 Completed 0 5 5 this annual report. Members of the public can make A5 Transferred out 0 0 0 comments to the committee about how the ICAC does A6 Withdrawn 0 0 0 its work and suggest changes. A7 Total processed 0 5 5 A8 Unfinished (carried forward) 0 0 0 Members of the public may raise with the Inspector of the ICAC issues which come within the Inspector’s functions. The Inspector may audit the ICAC’s operations, deal with complaints of misconduct and
120 ICAC Annual Report 2006–2007 Section B: What happened to completed G4 Section 25(1) (a) (exempt) 0 3 requests? G5 Section 25(1) (b), (c), (d) (otherwise 0 0 – completed requests are those on line A4 previously. available) G6 Section 28(1) (b) (documents not held) 0 0 Result of FOI request Personal Other G7 Section 24(2) – (deemed refused, over 0 0 B1 Granted in full 0 2 21 days) B2 Granted in part 0 0 G8 Section 31(4) (released to medical 0 0 B3 Refused 0 3 practitioner) B4 Deferred 0 0 G9 Totals 0 3 B5 Total completed 0 5 Section H: Costs and fees of requests Section C: Ministerial certificates processed during the period. – the number of certificates issued during the period. Assessed costs FOI fees received C1 Ministerial certificates issued 0 H1 All completed $150 $0 requests Section D: Formal consultations Section I: Discounts allowed – the number of requests requiring consultations (issued) and total number of formal consultations for – the numbers of FOI requests processed during the the period. period where discounts were allowed. Type of discount allowed Personal Other Issued Total I1 Public interest 0 3 D1 Number of requests requiring 0 0 I2 Financial hardship – pensioner/child 0 0 formal consultation(s) I3 Financial hardship – non-profit 0 0 organisation Section E: Amendment of personal records I4 Totals 0 3 – the number of requests for amendment processed during the period. I5 Significant correction of personal 0 0 records Result of amendment request Total Section J: Days to process E1 Result of amendment – agreed 0 E2 Result of amendment – refused 0 – the number of completed requests (A4) by calendar E3 Total 0 days (elapsed time) taken to process.
Elapsed time Personal Other Section F: Notation of personal records J1 0–21 days 0 5 – the number of requests for notation processed during J2 22–35 days 0 0 the period. J3 Over 35 days 0 0 F3 Number of requests for notation 0 J4 Totals 0 5
Section G: FOI requests granted in part or Section K: Processing time refused – the number of completed requests (A4) by hours – the basis of disallowing access and the number of taken to process. times each reason is cited in relation to completed requests which were granted in part or refused. Processing hours Personal Other K1 0–10 hrs 0 5 Basis of disallowing or restricting Personal Other K2 11–20 hrs 0 0 access K3 21–40 hrs 0 0 G1 Section 19 (application incomplete, 0 0 wrongly directed) K4 Over 40 hrs 0 0 G2 Section 22 (deposit not paid) 0 0 K5 Totals 0 5 G3 Section 25(1) (a1) (diversion of 0 0 resources)
Chapter 8: Appendices 121 Section L: Reviews and appeals This council was formed to produce and formalise – the number finalised during the period. professional qualifications, standards and best practice across all jurisdictions in the area of surveillance. L1 Number of internal reviews finalised 1 Inter-agency Technical Committee L2 Number of Ombudsman reviews finalised 0 Participating ICAC staff member: Herry Young, Special L3 Number of District Court appeals finalised 0 Investigator (Technical) Details of internal review results – in relation to This is a subcommittee of the annual Law Enforcement internal reviews finalised during the period. Telecommunications Interception Conference. The committee meets quarterly to discuss issues relating Bases of internal review Personal Other to the delivery of material from telecommunications Upheld Varied Upheld Varied carriers and to share solutions for overcoming Grounds internal review 0 0 0 0 technical problems. Representatives of the requested 0 0 0 0 L4 Access refused telecommunications carriers also attend and provide 0 0 0 0 L5 Deferred information and research results on industry initiatives L6 Exempt matter 0 0 1 0 and solutions. L7 Unreasonable charges 0 0 0 0 L8 Charge unreasonably 0 0 0 0 Interception Consultative Committee incurred 0 0 L9 Amendment refused Participating ICAC staff member: Herry Young, Special L10 Totals 0 0 1 0 Investigator (Technical) This committee is made up of representatives from Comparison with previous year law enforcement and investigative agencies. It deals In 2005–06 the ICAC received five FOI requests with legal, policy and technical issues relating to the relating to other matters. All these requests were dealt administration of interceptions. The ICAC is also with in that period. represented on subcommittees and provides technical advice to the committee. Impact on the ICAC Inter-departmental Committee for The impact on the ICAC of handling these requests Department of Corrective Services was minimal. Participating ICAC staff member: Stephen Osborne, Chief APPENDIX 11: PARTICIPATION IN Investigator, Strategic Operations SIGNIFICANT COMMITTEES This committee meets monthly and includes AUSTRAC client liaison meetings representatives from state and federal law enforcement agencies, including the Police Integrity Committee Participating ICAC staff members: Raymond Kwan, Special and the ICAC. The committee oversees and makes Financial Investigator decisions about the department’s custodial witness Australian Transaction Reports and Analysis Centre protection program. (AUSTRAC) clients liaise with the financial transactions Joint Initiatives Group tracking agency on a half-yearly basis. Meetings which are organised by AUSTRAC are attended by Participating ICAC staff members: Maria Plytarias, Manager, representatives from the ICAC and other federal and Assessments, Jacqueline Fredman, Manager, Assessments; state agencies to discuss matters in relation to the Nechal Gill, Senior Assessment Officer and Ailsa Gentles, Financial Transaction Reports Act 1988. Assessment Officer
Australian Police Professional Standards This group meets bi-monthly and is a network of state Council — Project 11 Surveillance and federal complaint handling bodies. Members share information and resources about complaint handling Participating ICAC staff member: Surveillance Team Leader and alternative dispute resolution issues as well as arranging occasional seminars on complaint handling matters.
122 ICAC Annual Report 2006–2007 Joint Outreach Initiatives Network This group meets quarterly and brings together Participating ICAC staff member: Yvonne Miles, Manager, representatives from law enforcement agencies to Education and Public Affairs discuss issues relating to computer forensics and the acquisition of digital evidence. This network is a subgroup of the Joint Initiatives Group and meets bi-monthly. It comprises Protected Disclosures Act Implementation representatives from complaint handling bodies. Steering Committee Members network and share ideas and information Participating ICAC staff members: Theresa Hamilton, Deputy about each other’s outreach work and identify Commissioner; John Pritchard, Deputy Commissioner; and opportunities for possible joint initiatives. Linda Waugh, Executive Director, Corruption Prevention, Education and Research Law Enforcement Advisory Committee This committee did not meet in 2006–07. Participating ICAC staff member: David Casserly, Chief Investigator, Surveillance and Technical Unit Public Sector Rehabilitation Coordinators This committee meets quarterly and includes Network Forum representatives of law enforcement agencies, the Participating ICAC staff members: Virginia Tinson, Manager, communications industry, the Commonwealth Human Resources and Administration; and Cathy Walsh, Department of Communications, Information Technology Senior Human Resources Officer and the Arts, and the Attorney General’s Department. This forum is coordinated by the Treasury Managed The Australian Communications Authority seeks input Fund for NSW public sector agency rehabilitation from the committee to inform their administration (return-to-work) coordinators. The forum provides an of Parts 13–15 of the Telecommunications Act 1997. opportunity to educate and disseminate information The committee also provides a forum for consultation to agencies that assists them in managing their return- between the communications industry and law to-work programs while encouraging best practice enforcement and national security agencies. management. Local Government Liaison Group Special Networks Committee Participating ICAC staff members: Maria Plytarias, Manager, Participating ICAC staff member: Herry Young, Special Assessments; John Renshaw, Acting Manager, Assessments, Investigator (Technical) Jacqueline Fredman, Manager, Assessments; Giselle Tocher, Principal Officer, Local Government and Planning; and This committee includes representatives of Nechaldeep Gill, Senior Assessment Officer intercepting agencies and is the discussion forum for telecommunications interception capability projects and This group meets bi-monthly and brings together related contractual issues. It meets quarterly before representatives from the NSW Ombudsman, the the Interception Consultative Committee and sends its Department of Local Government and the ICAC to minutes to this committee. discuss integrity and better practice in NSW local government. ‘Whistling While They Work’ Project Steering Committee NSW Corruption Prevention Network Participating ICAC staff members: Linda Waugh, Executive Participating ICAC staff member: Nicola Dunbar, Principal Director, Corruption Prevention, Education and Research; and Officer, Public Sector Evalynn Mazurski, Senior Research Officer This is a network of public sector staff who work to This committee oversees the progress of work on the promote corruption prevention strategies through ‘Whistling While They Work: Enhancing the Theory corruption prevention forums and encourages formal and Practice of Internal Witness Management in Public and informal networks of practitioners. Sector Organisations’ project. The committee must NSW Digital Evidence Group formally meet at least once a year across the course of the three-year project. Participating ICAC staff member: Clinton Towers, Special Investigator, Forensics
Chapter 8: Appendices 123 Identity Crime Working Group Corporate publications
Participating ICAC staff members: The Hon Jerrold Cripps QC, July 2006 ICAC strategic plan 2006–10 Commissioner; Linda Waugh, Executive Director, Corruption Oct. 2006 Annual report 2005–06 Prevention, Education and Research Feb. 2007 ICAC code of conduct This group meets regularly to discuss issues relating Apr. 2007 The Corruption and Anti-Corruption Executive to identity crime and to identify ways to assist Program 2007 (brochure) public sector agencies to reduce identity fraud. It June 2007 Protected Disclosures poster and postcards works closely with the Australian Government on development of the National Identity Security Strategy. Corruption Matters newspaper
APPENDIX 12: ICAC PUBLICATIONS IN Nov. 2006 Corruption Matters Issue No.28 2006–07 May 2007 Corruption Matters Issue No.29 Investigation reports Conferences Sept. 2006 Report on investigation into the case management Nov. 2006 Australian Public Sector Anti-corruption Conference and administration of community service orders (corporate flyer) (Operation Cadmus) Oct. 2006 Report on investigation into sale of surplus public May 2007 APSAC Conference Early Bird Flyer (brochure) housing properties (Operation Aztec) June 2007 APSAC Conference Program (brochure) Dec. 2006 Report on investigation into defrauding the RTA and RailCorp in relation to provision of traffic management services (Operation Quilla) Mar. 2007 Report on an investigation and systems review of corruption risks associated with HSC take-home assessment tasks (Operation Bligh) June 2007 Report on an investigation into corrupt conduct associated with RailCorp (Operation Persis)
Section 14(2) Investigation reports
Aug. 2006 Report to the Minister for Local Government under section 14(2) of the Independent Commission Against Corruption Act 1988 into the conduct of two Burwood councillors
Corruption prevention and research publications
Aug. 2006 Lobbying local government councillors (tip sheet) Oct. 2006 Strengthening the corruption resistance of the NSW public health sector (consultation report) Dec. 2006 Protecting identity information and documents: Guidelines for public sector managers Dec. 2006 Corruption risks in occupational licensing and strategies for managing them Dec. 2006 Community attitudes to corruption and the ICAC: Report on the 2006 survey June 2007 Protected disclosure posters and postcards June 2007 ICAC and public sector organisations: Guidelines for principal officers
124 ICAC Annual Report 2006–2007 APPENDIX 13: SUMMARY OF TRAINING ENGAGEMENTS, PRESENTATIONS AND DELEGATION VISITS
Table 39: Training engagements and speaking presentations Training engagements
Date Organisation Speaker Subject Location 26 July 2006 Dept of Commerce Steffanie von Helle An introduction to the ICAC and corruption Sydney NSW Procurement Certification risks in procurement Program 9 Aug. 2006 Mid Coast Water Steffanie von Helle Corruption prevention for managers Taree 21 Aug. 2006 Dept of Commerce Steffanie von Helle An introduction to the ICAC and corruption Sydney NSW Procurement Certification risks in procurement Program 12 Sept. 2006 University training package train- Alexandra Mills Managing the risk of corruption: A training Sydney the-trainer launch Catherine Hughes package for NSW public universities 25 Sept. 2006 Dept of Juvenile Justice Jane Coulter Corruption prevention for managers Sydney Catherine Hughes 31 Oct. 2006 Baulkham Hills College (TAFE) Alina Hughes Corruption prevention for managers Sydney Catherine Hughes 1–9 Nov. 2006 ANU Short Course – Corruption Alexandra Mills Anti-corruption agencies Canberra and Anti-Corruption, Asia Alexandra Mills Introduction to the ICAC Sydney Pacific School of Economics and Catherine Hughes Government Linda Waugh Panel session: Structure, roles and functions of Sydney Clive Small the ICAC Maria Plytarias Jay Lawrence Maria Plytarias Receiving allegations of corrupt conduct Sydney Steve Osborne Investigating corruption Sydney Don McKenzie Question and answer session: Conducting an Sydney Steve Osborne internal investigation Lewis Rangott Question and answer session: Corruption risks Sydney and local government Nicola Dunbar Preventing corruption Sydney Catherine Hughes Communicating about corruption Sydney Bill Kokkaris 17 Nov. 2006 Marrickville Council Catherine Hughes Corruption prevention for managers Sydney 27 Nov. 2006 Local Aboriginal land council Margaret Sutherland Corruption prevention training for local Lismore workshop, New England Outreach Michael Nest Aboriginal land councils Program 28 Nov. 2006 Local Aboriginal land council Margaret Sutherland Corruption prevention training for local Grafton workshop, New England Outreach Michael Nest Aboriginal land councils Program 28 Nov. 2006 State agencies workshop, New Vicki Klum Corruption prevention for managers Tamworth England Outreach Program Alexandra Mills 28 Nov. 2006 Local government workshop, New Don McKenzie Fact Finder Tamworth England Outreach Program Stephen Osborne 29 Nov. 2006 Local government workshop, New Lewis Rangott Corruption prevention for managers Tamworth England Outreach Program Deirdre Cooper 29 Nov. 2006 State agencies workshop, New Don McKenzie Fact Finder Tamworth England Outreach Program Steve Osborne 29 Nov. 2006 Local Aboriginal land council Margaret Sutherland Corruption prevention training for local Glen Innes workshop, New England Outreach Michael Nest Aboriginal land councils Program 30 Nov. 2006 New England Outreach Program Chris Wheeler, Protected disclosures train-the-trainer workshop Tamworth (Deputy Ombudsman) Catherine Hughes
Chapter 8: Appendices 125 30 Nov. 2006 Local Aboriginal land council Margaret Sutherland Corruption prevention training for local Tamworth workshop, New England Outreach Michael Nest Aboriginal land councils Program 6 Dec. 2006 WorkCover Authority NSW Don McKenzie Fact Finder Gosford 12 Dec. 2006 RailCorp Chris Wheeler, Protected disclosures workshop for investigators Sydney (Deputy and nominated officers Ombudsman) Catherine Hughes 21 Mar. 2007 Dept of State and Regional Deirdre Cooper Corruption prevention for managers Sydney Development Nicola Dunbar 7 May 2007 Dept of Commerce Margaret Ludlow Probity in procurement Sydney NSW Procurement Certification Program 17 May 2007 Hunter New England Area Health Nicola Dunbar Managing the risk of corruption: A training Tamworth Service package for the NSW public health sector (pilot) 23 May 2007 Dept of State and Regional Deirdre Cooper Corruption prevention for managers Sydney Development Margaret Ludlow 30 May 2007 Sydney South West Area Health Nicola Dunbar Managing the risk of corruption: A training Liverpool Service package for the NSW public health sector (pilot) 4 June 2007 Dept of Commerce Margaret Ludlow Probity in procurement Sydney NSW Procurement Certification Program 5 June 2007 North Coast Outreach Program Nicola Dunbar Corruption prevention for managers Coffs Lewis Rangott Harbour 5 June 2007 Local Aboriginal land council Margaret Sutherland Corruption prevention for local Aboriginal land Port North Coast Outreach Program Michael Nest councils Macquarie 6 June 2007 Local Aboriginal land council Margaret Sutherland Corruption prevention for local Aboriginal land Coffs North Coast Outreach Program Michael Nest councils Harbour 6 June 2007 Coffs Harbour High School Senior Sue Bolton Legal Studies workshop Coffs College (Session 1) Harbour North Coast Outreach Program 6 June 2007 Coffs Harbour High School Senior Sue Bolton Legal Studies workshop Coffs College (Session 2) Harbour North Coast Outreach Program 6 June 2007 Kempsey Council Chris Wheeler Protected disclosures Coffs North Coast Outreach Program (Deputy Harbour Ombudsman) 7 June 2007 North Coast Outreach Program Chris Wheeler Protected disclosures train-the-trainer Coffs (Deputy Harbour Ombudsman) Margaret Ludlow 14 June 2007 Sutherland Shire Council Nicola Dunbar Corruption prevention for managers Sydney Margaret Ludlow 18 June 2007 North Coast Outreach Program Lynn Atkinson Corruption prevention for managers Ballina Alexandra Mills 21 June 2007 North Coast Outreach Program Jay Lawrence Fact Finder Ballina Stephen Osborne 21 June 2007 Byron Bay High School workshop Bill Kokkaris Legal Studies workshop Byron Bay North Coast Outreach Program 21 June 2007 Ballina High School workshop Bill Kokkaris Legal Studies workshop Ballina North Coast Outreach Program 26 June 2007 Office of State Revenue Jay Lawrence Fact Finder Sydney 27 June 2007 Albury City, Greater Hume, Chris Wheeler Protected disclosures train-the-trainer Albury Lockhart, Narrandera, Wagga (Deputy Wagga councils Ombudsman) Margaret Ludlow
126 ICAC Annual Report 2006–2007 Speaking presentations
Date Organisation Presenter Subject Location 29 Aug. 2006 University of Western Sydney, Bachelor Clive Small Ethics of criminal investigation Sydney of Policing 10 Aug. 2006 North Sydney Council Lewis Rangott Corruption risks in local government, Sydney regulatory risks 6 Sept. 2006 North Sydney Council Lewis Rangott Corruption risks and regulatory staff Sydney Alina Hughes 15 Sept. 2006 Community Relations Commission Bill Kokkaris Induction session for new casual Sydney interpreters and translators 28 Sept. 2006 NSW Young Planners Lewis Rangott ICAC Presentation to Young Planners Sydney Forum 2006 17 Oct. 2006 Hong Kong ICAC David Casserly The role of the Surveillance & Technical Hong Kong CICC Course 26 Unit 18 Oct. 2006 Dubbo Regional High School Bill Kokkaris Role and function of the ICAC Sydney presentation Yvonne Miles 23 Oct. 2006 International Association of Anti- Commissioner Parliamentary oversight committee Sydney Corruption Authorities 24 Oct. 2006 Dept of Health, Senior Executive Nicola Dunbar Introduction to the ICAC and corruption Sydney Orientation Program prevention 31 Oct. 2006 JWP Sydney Lewis Rangott ICAC presentation to JWP Consulting Sydney 10 Nov. 2006 Riverina Regional LGMA Lewis Rangott Protecting your council from corruption Cootamundra 27 Nov. 2006 Armidale – Dumaresq Council, New Jane Coulter Role and function of the ICAC Armidale England Outreach Program Julie Walton 28 Nov. 2006 Tamworth Council, New England Lewis Rangott Role and function of the ICAC Tamworth Outreach Program Deirdre Cooper 29 Nov. 2006 Peel High School, New England Bill Kokkaris An introduction to the ICAC Tamworth Outreach Program Catherine Hughes 29 Nov. 2006 Oxley High, New England Outreach Bill Kokkaris An introduction to the ICAC Tamworth Program Catherine Hughes 30 Nov. 2006 Community Leaders Breakfast, New Commissioner Role and function of the ICAC Tamworth England Outreach Program 30 Nov. 2006 Tamworth High School, New England Bill Kokkaris An introduction to the ICAC Tamworth Outreach Program 30 Nov. 2006 Regional Coordination Management Commissioner Introduction to the ICAC and corruption Armidale Group, New England Outreach Program Linda Waugh issues for state agencies 7 Dec. 2006 NSW Health, Internal Auditors Nicola Dunbar Why corruption prevention in health is Sydney Conference hard and what to do about it 6 Feb. 2007 North Sydney Council Lewis Rangott Role of advisory committees in local Sydney government 22 Feb. 2007 City of Amsterdam Integrity Bureau, Commissioner Local integrity system – NSW Amsterdam, World Cities Conference ‘Fighting Netherlands corruption and safeguarding integrity’ 27 Feb. 2007 Public Sector Executive Assistant and Michele Smith The art of being an expert on everything Canberra Personal Assistant 2007 Conference 7 Mar. 2007 Blacktown City Council Lewis Rangott Lobbying local government councillors Sydney 14 Mar. 2007 Rotary Club of Berowra Lewis Rangott Role and function of ICAC Sydney 22 Mar. 2007 Legal Studies Teachers State Conference Don McKenzie Role and function of the ICAC Sydney 26 Mar. 2007 Society of Medical and Biological Nicola Dunbar What is corruption? Gosford Engineering 3 May 2007 Corruption Prevention Network Commissioner Shedding light on corruption: the burning Sydney issues – panel discussion 10 May 2007 Australian Institute of Environmental Lewis Rangott Role and function of the ICAC Sydney Health 10 May 2007 Kempsey High School Yvonne Miles ICAC, corruption and you Sydney Legal Studies students Bill Kokkaris
Chapter 8: Appendices 127 16 May 2007 L21 Public Sector Leadership Commissioner Conflicts of interest Sydney Conference 5 June 2007 Dept of Health, Senior Executive Deirdre Cooper Introduction to the ICAC and corruption Sydney Orientation Program prevention 6 June 2007 Community Leaders Breakfast Commissioner Role and function of the ICAC Coffs Harbour North Coast Outreach Program 6 June 2007 Local government session Commissioner Role and function of the ICAC and the Coffs Harbour North Coast Outreach Program corruption risks that affect local councillors 6 June 2007 Regional Coordination Management Commissioner Role and function of the ICAC and corruption Coffs Harbour Group Deputy issues for state agencies North Coast Outreach Program Commissioner 26 June 2007 Office of the Clerk of the House of Peter Richardson Role and function of the ICAC Sydney Legislative Assembly Alexander Mills Course for electorate staff
Table 40: International and out-of-jurisdiction delegations
Date Name of delegation Purpose Officers meeting delegation 21 Nov. 2006 Korean Independent Commission Discuss anti-corruption issues and explore ways for mutual Commissioner, Roy Against Corruption cooperation Waldon 21 Nov. 2006 Malaysian Royal Police Learn about investigative methods and procedures used to Dave Casserly, Stephen combat corruption Osborne 7 Dec. 2006 Young politicians, Malaysia Learn about transparency and accountability and how to Linda Waugh identify and prevent corruption 1 Feb. 2007 Ahmad Shabery Cheek, Understand Australia’s approach to the oversight of public Linda Waugh Malaysian Foreign Secretary service agencies in particular accountability, transparency and governance arrangements 9 Feb. 2007 Office of Police Integrity, Victoria Learn about the functions and practices of like organisations Clive Small, Lynn Atkinson, John Renshaw 28 Mar. 2007 China’s Supreme People’s Learn about legal and administrative reform such as anti- Commissioner, Roy Procuratorate – high level corruption Waldon, Linda Waugh delegation 28 Mar. 2007 China’s Supreme People’s Receive overview of Commission and how it operates Don McKenzie Procuratorate – lawyers and public servants 31 May 2007 Parliamentary Crime & Misconduct Discuss referral of complaints back to agencies for Deputy Commissioner, Committee, Queensland investigation and relationship between the Parliamentary Joint Jacqueline Fredman Committee and the ICAC
APPENDIX 14: OVERSEAS TRAVEL
Officer When Countries Purpose Cost to visited ICAC ($) Commissioner Feb. 2007 Netherlands Attend the World Cities Conference on Fighting 2,049 Corruption and Safeguarding Integrity. Deliver a paper titled ‘Integrity systems in NSW’ David Casserly, 14 Oct. – 11 Nov. Hong Kong Attend Hong Kong Independent Commission 12,337 Chief Investigator, Surveillance 2006 Against Corruption’s Chief Investigators Command & Technical Unit course Don McKenzie, 11–16 Feb. 2007 New Zealand Attend Executive Master of Public Administration 1,020 Principal Lawyer course at Wellington conducted by the Australian and New Zealand School of Government Roy Waldon, Jan. 2007 Taiwan 2007 International Anti-corruption Conference Nil Executive Director, Legal
128 ICAC Annual Report 2006–2007 APPENDIX 15: ORGANISATIONAL CHART
Commissioner The HonIrene Jerrold Moss Cripps QC
Deputy Commissioner TheresaKieran Hamilton Pehm
Media Assessments Nicole Thomas Jacqueline Fredman
Executive Director, Executive Director, Executive Director, Executive Director, CorruptionCorruption Prevention,Prevention Legal InvestigationStrategic Operations Division Corporate Services EducationEducation and & Research Research (Solicitor(Solicitor toto thethe Commission)Commission) MichaelMick Symons Outram Lance Favelle GrantLinda WaughPoulton JohnRoy PritchardWaldon
Research SurveillanceStrategic Risk and Research Finance & & Prevention Finance Legal AssessmentTechnical Unit Unit and Prevention Administration x 2 teams
Information InvestigationsInvestigations Education Planning & Human Management and x 2 teamsteams and& Public Public Affairs Affairs Resources Technology
Information Information Operations Adviser Human Resources Management & Management & Executive Officer and Administration Technology Technology
Chapter 8: Appendices 129 APPENDIX 16: CHIEF EXECUTIVE As the Commissioner’s delegate, she generally approves OFFICER AND SENIOR EXECUTIVE the use of the ICAC’s compulsory powers and presides SERVICE at ICAC compulsory examinations as required by the Commissioner. Executive remuneration, Commissioner and executive officers level 5 and above In her role as direct line manager for the Assessments The Commissioner, the Hon Jerrold Cripps QC, was Section, she has worked with the Manager, Assessments appointed for a five-year term on 14 November 2004. to develop a 2007–08 business plan which includes Mr Cripps’ conditions of employment are outlined in redefined key result areas and makes a commitment to his instrument of appointment and his salary, including staff training and support. any increases, is paid in line with the determination of the Statutory and Other Officers Remuneration In providing strategic and operational advice to the Tribunal for puisne judges. The Commissioner’s salary Commissioner, Ms Hamilton has worked with ICAC’s is calculated at 160 per cent of the remuneration of executive directors to: a NSW Supreme Court puisne judge. On 1 October review the structure and focus of the 2006, Mr Cripps received a 4 per cent salary increase Investigation Division (formerly Strategic to his total remuneration package, bringing it to Operations Division) to ensure efficiency and $491,184. No fringe benefits were paid for the relevant accountability reporting period. improve the focus of the Strategic Investigations Group (formerly the Investigations Management Also effective from 1 October 2006, the Tribunal awarded Group) to ensure appropriate strategic oversight a 4 per cent increase to the Commission’s SES officers. of the ICAC’s investigative role, including revising report templates for the group to ensure that The Deputy Commissioner’s position is remunerated appropriate operational information is being at an SES officer level 5. Ms Theresa Hamilton was provided. appointed to the position of Deputy Commissioner in January 2007 for a five-year term. Ms Hamilton’s current Ms Hamilton supports the Commissioner by directly total remuneration package is $220,000. supervising the executive directors responsible for: Performance of Deputy Commissioner investigations The Commission is required under annual reporting corruption prevention, education and research legislation to report on the performance of any SES legal services officers at level 5 or above. At the end of the 2006–07 corporate services. reporting period, Ms Theresa Hamilton was the only ICAC senior officer in this category. She also directly supervises the Manager, Assessments and the ICAC’s Media Manager. Ms Hamilton commenced her appointment as Deputy Commissioner in January 2007. The Commissioner has Executive management assessed her performance to date as excellent. She During the reporting period the Commission’s has successfully met the criteria in her performance executive management team comprised: agreement, including the provision of high-quality and timely operational and strategic advice. The Hon Jerrold Cripps QC, Commissioner, BA LLB (Sydney) LLM (Sydney) Ms Hamilton acts as the ICAC’s main point of liaison John Pritchard, Deputy Commissioner, BA LLB with its external oversight bodies, namely the Office of (UNSW), LLM (Sydney) from 1 July 2006 to 13 the Inspector of the ICAC and the Parliamentary Joint October 2006 Committee on the ICAC. Theresa Hamilton, Deputy Commissioner, LLB (University of Queensland) from 8 January 2007
130 ICAC Annual Report 2006–2007 Linda Waugh, Executive Director, Corruption APPENDIX 17: ACCESS AND EQUITY Prevention, Education and Research, BA, Double Major in Psychology (University of Queensland), The Commission developed a new Equal Employment Post Grad Dip of Psychology (University of Opportunity (EEO) Management Plan in October 2006. Queensland), MBA (University of Queensland) This plan sets EEO objectives and targets along with Lance Favelle, Executive Director, Corporate the strategies to achieve them. Services, BCom (UNSW), CPA (ASCPA) The ICAC’s Access and Equity Committee continues Clive Small, Executive Director, Strategic to play a major role in monitoring and implementing Operations, Dip of Criminology (Sydney), BA the plan and dealing with any equity issues that may Sociology (Macquarie), Post Grad Dip in Public arise within the Commission, particularly in relation to Sector Management (UTS) from 1 July 2006 to policies associated with EEO. 2 March 2007 Mick Symons, Executive Director, Investigation, In the course of the reporting period there were a LLB Hons (Adelaide), BBus (Marketing) number of changes to the composition of the ICAC’s (University of Sth Aust), Grad Cert Management Access and Equity Committee as a result of staff leaving (Charles Sturt), Grad Dip Legal Practice the Commission. During 2006 and 2007 nominations (Adelaide), Grad Dip Fraud Investigation (Charles were sought to fill three separate vacancies on the Sturt), MBA (Adelaide) from 4 June 2007 committee. The members of the committee during Roy Waldon, Executive Director Legal and 2006–07 were: Solicitor to the Commission, LLB Hons Cindy Fong, Finance (1 July 2006 to 14 July 2006 (University of Tasmania). then proceeded on leave) Jacqueline Fredman, Assessments (12 May 2006 The comparison of the current executive positions with ongoing) previous years as well as the numbers of female senior Bill Kokkaris, Corruption Prevention, Education and executive staff are shown in the following tables. Research Table 41: Total number of executive staff Jay Lawrence, Legal 2006–07 compared to previous years Steve Osborne, Investigation SES Level 2003–04 2004–05 2005–06 2006–07 Maria Plytarias, Assessments (1 September 2006 to Commissioner 1 1 1 1 19 January 2007) Level 5 1 1 1 1 John Renshaw, Assessments (20 January 2007 to 11 Level 3 1 1 1 1 May 2007) Level 2 2 2 2 2 Michele Smith, Executive Unit Level 1 1 1 1 1 Total 6 6 6 6 Virginia Tinson, Human Resources and Administration Table 42: Number of female senior executive Cathy Walsh, Human Resources and Administration. staff 2006–07 compared to previous years
Year Number Lance Favelle, Executive Director of Corporate Services, was the senior management representative. 2006–07 2 Susan Hay, the ICAC’s current Spokeswoman, was also 2005–06 1 an active member of the committee. 2004–05 1
2003–04 2 Equal employment opportunity (EEO) and diversity training During 2006–07 all new staff received EEO/diversity training. In addition, there were several refresher
Chapter 8: Appendices 131 EEO/grievance training presentations for staff who The position was advertised and a suitable applicant had received their initial training more than two years identified. Unfortunately, due to reasons beyond the previously. In total 64 staff completed EEO/grievance Commission’s control, the applicant was unable to training, which covers ICAC policies and procedures be appointed to the position. As a consequence, the on EEO and discrimination, harassment and bullying Commission declined the Elsa Dixon funding. A new prevention, and grievances. application for funding to support this permanent position has been submitted for 2007–08. The Commission has processes in place to identify further staff who will require EEO/diversity refresher As the Commission still needs to address matters training in 2007–08. raised by the Indigenous community, it has appointed an Indigenous Assessment Officer who has a de facto role Work arrangements in assisting the Commission in this area. The ICAC has a strong commitment to providing flexible Two Ways Together: NSW Aboriginal Affairs work arrangements. It supports applications from staff Plan to work at home when they have carer or other family commitments or need to manage unforeseen emergency To assist in achieving the NSW Aboriginal Affairs Plan’s situations. Thirty staff took a total of approximately corporate priority relating to service delivery planning, 115.5 days of family and community service leave and the Commission developed and implemented strategies 13 staff a total of approximately 56 days of carer’s leave. during 2006–07. These included delivery of corruption A number of staff received permission to work from risk management workshops to Aboriginal land council home on a short-term basis to help balance work and staff and office holders on the mid north coast under family commitments. the ICAC Rural and Regional Outreach Program. As described in Chapter 4 of this report, the Commission Employee Assistance Program used a specially developed training package in the workshops. The ICAC continued to offer staff counselling services through the Employee Assistance Program (EAP), which Under recent amendments to the Aboriginal Land is run by an external provider. In 2006–07 a dedicated Rights Act 1983, all newly elected officials on Aboriginal EAP intranet site was developed and the EAP provider land council boards must complete training on their presented an information session to staff. responsibilities. It is anticipated that the ICAC training Recruitment and merit selection training package, with its targeted corruption prevention message, will be a useful reinforcement to the The ICAC ensures that all new managers and other governance training that the NSW Aboriginal Land identified staff complete merit selection techniques Council is currently developing for this purpose. training. In 2006–07 an accredited external consultant conducted two full-day training courses in merit The Commission was also a guest of the Regional selection for 13 staff. Coordination Management Group twice during 2006–07 to provide assistance on corruption Strategies to increase Aboriginal and Torres prevention strategies and good governance. Strait Islander representation The Commission created the position of Indigenous NSW Government Action Plan for Women Assessment and Liaison Officer with funding support The NSW Government Action Plan for Women is through the Elsa Dixon Aboriginal Employment Program a whole-of-government approach to improving the to deal with complaints that particularly relate to the economic and social participation of women in NSW Indigenous community; advise other Commission officers society. While the ICAC is not required to have an on issues relating to Indigenous culture; and undertake action plan for women, it strives to promote the project and training work within the Corruption NSW Government’s strategies for women, identify Prevention, Education and Research Division relating to and remove structural barriers to the employment of Indigenous affairs. women at all levels, and ensure that women are given fair access to its services.
132 ICAC Annual Report 2006–2007 The ICAC supports the action plan’s objective of Sydney breakfast hosted by UNIFEM in March promoting the position of women. In 2006–07 women 2007 as part of the International Women’s Day made up 55 per cent of the total ICAC workforce. Of celebrations these, 98.5 per cent were earning in excess of $50,000 Leadership Toolkit Forum held by the Australian and 40 per cent in excess of $81,479 per annum. Women and Leadership Forum in April 2007 to explore critical leadership issues for women The Commission has many development opportunities and programs that target female employees. The NSW Public Sector Forum in June 2007 that Commission’s policy on career development sought input from women across the NSW opportunities for ICAC officers is currently under public sector on a new women’s employment review. The policy specifically targets grades 1 to 8 and development strategy. and implements equity principles that will help female employees gain additional experience in operational The Spokeswomen’s Program for 2007–08 will areas of the Commission. The Commission’s parental again focus on providing development opportunities, leave policies and flexible work arrangement policies particularly in leadership, and will also explore also create a working environment in which women can networking opportunities with other similar agencies’ balance career and family. Spokeswomen’s programs.
The ICAC actively supports the Spokeswomen’s Equal employment opportunity (EEO) and Program and sponsors female staff to attend related diversity program conferences and seminars, including the 2007 NSW Public Sector Women’s Forum. The Commission has developed a number of strategies within its EEO Management Plan, Disability Action Plan, Spokeswomen’s Program and Ethnic Affairs Priority Statement to help meet the NSW Government benchmarks for employment The Commission has a dedicated spokeswoman who of people from identified EEO groups. Table 43 (EEO is an active member on the ICAC’s Access and Equity groups) and Table 44 (Distribution index) reflect Committee and supports female staff by sharing the ICAC’s achievements against the benchmarks. information and encouraging networking opportunities Employment of Aboriginal people and Torres Strait across the ICAC. Islanders increased by 0.8 per cent on the previous reporting period while employment of people with a To enhance the Spokeswomen’s Program in 2006–07, disability increased by 1 per cent. the ICAC sought nominations from female staff to form a Spokeswomen’s committee to assist the Tables 43 and 44 illustrate the trends in relation to the spokeswoman in organising development activities. various EEO employment groups against the established NSW Government benchmarks. Strategies over the year included supporting or sponsoring female staff to attend development Table 45 Staff numbers by salary level 2006–07 and programs and special events such as the: Table 46 Staff numbers by employment basis 2006–07 show the gender and EEO target group of staff by Public Sector Management Program for senior salary level and employment basis, that is, permanent, staff, front-line and middle managers temporary, full-time or part-time. NSW executive development programs coordinated through the Department of Premier and Cabinet Young Leaders Awards sponsored by KPMG relating to the 2007 NSW executive development programs
Chapter 8: Appendices 133 Table 43: Trends in the representation of EEO groups
% OF TOTAL STAFF
Benchmark EEO group or target 2003 2004 2005 2006 2007 Women 50 50 51 53 54 55 Aboriginal people and Torres Strait Islanders 2 0 0 0 0 0.8 People whose first language was not English 20 21 22 19 21 17 People with a disability 12 9 11 12 11 12 People with a disability requiring work-related 7 5 4.3 3.5 1.8 0.8 adjustment
Table 44: Trends in the distribution of EEO groups
DISTRIBUTION INDEX
Benchmark EEO group or target 2003 2004 2005 2006 2007
Women 100 85 91 86 89 91 Aboriginal people and Torres Strait Islanders 100 n/a n/a n/a n/a n/a People whose first language was not English 100 102 98 97 98 95 People with a disability 100 n/a n/a n/a n/a n/a People with a disability requiring work-related 100 n/a n/a n/a n/a n/a adjustment
Notes: 1. Staff numbers are as at 30 June. 2. Excludes casual staff. 3. A distribution index of 100 indicates that the centre of the distribution of the EEO group across salary levels is equivalent to that of other staff. Values less than 100 mean that the EEO group tends to be more concentrated at lower salary levels than is the case for other staff. The more pronounced this tendency is, the lower the index will be. In some cases the index may be more than 100, indicating that the EEO group is less concentrated at lower salary levels. The distribution index is automatically calculated by the software provided by the Department of Premier and Cabinet. 4. The distribution index is not calculated where EEO group or non-EEO group numbers are less than 20.
Table 45: Staff numbers by salary level 2006–07
People People from racial, whose ethnic, language People with Aboriginal ethno- first spoken a disability people & religious as a child requiring Torres Strait minority was not People with work-related Salary level Staff Respondents Men Women Islanders groups English a disability adjustment
< $33,910 0 0 0 0 0 0 0 0 0 $33,910–$44,537 1 1 1 0 0 0 0 1 0 $44,538–$49,781 1 1 0 1 0 0 0 0 0 $49,782–$63,006 29 29 8 21 1 9 6 3 0 $63,007–$81,478 31 30 12 18 0 8 7 5 0 $81,479–$101,849 38 38 20 18 0 9 7 4 1 > $101,849 (non-SES) 15 15 9 6 0 2 1 2 0 > $101,849 (SES) 6 6 4 2 0 0 0 0 0 TOTAL 121 120 54 66 1 28 21 15 1
134 ICAC Annual Report 2006–2007 Table 46: Staff numbers by employment basis 2006–07
People People from whose racial, language People with Aboriginal ethnic, first a disability people ethno- spoken requiring & Torres religious as a child People work- Total Strait minority was not with a related Employment basis staff Respondents Men Women Islanders groups English disability adjustment
Permanent full-time 99 98 47 51 1 25 20 12 0 Permanent part-time 3 3 0 3 0 1 0 0 0 Temporary full-time 10 10 3 7 0 2 1 2 0 Temporary part-time 3 3 0 3 0 0 0 1 1 Contract – SES 6 6 4 2 0 0 0 0 0 Contract – non-SES 0 0 0 0 0 0 0 0 Training positions 0 0 0 0 0 0 0 0 Retained staff 0 0 0 0 0 0 0 0 Casual 0 0 0 0 0 0 0 0 TOTAL 121 120 54 66 1 28 21 15 1 SUBTOTALS Permanent 102 101 47 54 1 26 20 12 Temporary 13 13 3 10 2 1 3 1 Contract 6 6 4 2 Full-time 109 108 50 58 1 27 21 14 Part-time 6 6 6 1 1 1 Note: In Tables 45 & 46 one staff member requested that their EEO details be withheld from the survey.
Table 47: Employment basis for 2006–07 compared to previous 4 years
Employment basis 2002–03 2003–04 2004–05 2005–06 2006–07
Permanent Full-time 83 95 88 91 99 Part-time 7 6 8 4 3 Temporary Full-time 10 10 9 8 10 Part-time 0 1 2 1 3 Contract SES 6 5 6 6 6 Non-SES 0 0 0 0 0 Trainee 1 0 0 0 0 TOTAL 107 117 113 110 121
Table 48: Average full-time equivalent staffing 2003–04 to 2006–07
2003–04 2004–05 2005–06 2006–07 111 112.6 105.2 111.5
Chapter 8: Appendices 135 APPENDIX 18: DISABILITY ACTION PLAN providing cultural and linguistic diversity training to 65 staff The ICAC’s 2006–08 Disability Action Plan updating the dedicated culturally and linguistically demonstrates strong commitment to the diverse (CALD) intranet page with the 2007 days implementation and improvement to the ICAC’s of religious significance for multicultural NSW services and facilities for people with disabilities. updating of the bilingual skills directory to include three new languages – French, Greek and The plan focuses on access, promoting positive attitudes, Urdu learning and development, employment and dealing with clients. The ICAC’s Access and Equity Committee a review of Community Language Allowance continues to assist with reviewing and implementing Scheme (CLAS) recipients to determine strategies in the current Disability Action Plan. continued eligibility of the CLAS allowance engagement of accredited interpreters The major focus this year has been on implementing as required for hearings and preliminary targeted performance measures against the key result assessments areas of the plan as follows: completion of DVD training trigger resources which include scenarios relevant to CALD training all new managers and other identified communities staff in merit selection techniques continued participation at the Australian approval by the Prevention Management Group Employers’ Network disability forums of the report on the effectiveness of the strategy for people of non-English speaking background engagement of an accredited external provider in (NESB) that includes recommendations for the preparation of return-to-work plans for staff with work-related injuries ongoing NESB/CALD initiative maintenance and analysis of data on complainants from CALD purchase of ergonomic equipment to assist staff backgrounds in the performance of their work involvement of NESB/CALD community review of the emergency evacuation procedures, and plan to ensure inclusion of procedures for representatives in outreach activities. people with disabilities arrangements for the inclusion of TTY facilities in The 2007–08 EAPS Plan includes the following all advertisements for externally advertised job strategies: vacancies review and evaluation of demographic statistics EEO/grievance diversity training for new staff and collected from telephone callers to determine refresher training any service enhancements required for non- training in awareness of mental illness for five English speaking people staff to assist them in dealing with clients. development of a policy on the use of bilingual staff translation and interpreting services to improve the handling of complaints from people APPENDIX 19: ETHNIC AFFAIRS PRIORITIES STATEMENT of CALD backgrounds identification and coordination of suitable The ICAC’s comprehensive 2006–07 Ethnic Affairs training for staff to assist them with complainants Priorities Statement (EAPS) Plan includes a range of from CALD backgrounds including cultural diversity awareness training services and initiatives for people from culturally and linguistically diverse backgrounds. provision of relevant training to community workers and other workers dealing with CALD Achievements over the year include: communities development of the 2006–07 EAPS and ongoing dissemination of ICAC media releases implementation of the management plan in and other information to CALD media. accordance with the NSW Government’s principles of multiculturalism
136 ICAC Annual Report 2006–2007 APPENDIX 20: COMMISSION APPENDIX 21: OCCUPATIONAL HEALTH CONSULTATIVE GROUP AND SAFETY (OHS)
The Commission Consultative Group is the forum for The safety and wellbeing of staff is fundamental to staff, management and the Public Service Association the ICAC. The ICAC aims to provide a safe, equitable, of NSW that meets monthly to discuss and agree productive and satisfying workplace and to achieve the on policy and procedure relating to staff conditions NSW Government’s Working Together: Public Sector of employment and matters concerning access OHS and Injury Management Strategy 2005–2008 and equity and occupational health and safety. In objectives. Progress in achieving the strategy targets in accordance with its terms of reference, the group 2006–07 included: officially approves policies and procedures before injury prevention – 20 per cent reduction in these go to the Commissioner for endorsement. In workplace injuries by June 2007 – achieved addition to handling policy matters, it also provides a mechanism for staff to raise any issues that may relate injury management – 20 per cent reduction by June 2008 in the proportion of injured to the ICAC Award. The group also ensures that the employees still off work at 8, 12 and 26 weeks Access and Equity Committee, the Occupational – nil in this category Health and Safety Committee and the ICAC’s Classification Committee operate in accordance with cost of claims – 15 per cent reduction in average cost of claims by June 2008 – awaiting progress the ICAC Award and other relevant legislation. figures from SICorp The members of the group at the end of June 2007 were: injury management – 10 per cent of injured workers placed in suitable duties within one Staff representatives: week of the date they are fit for suitable duties by June 2008 – nil in this category Bill Kokkaris, Corruption Prevention, Education and Research Division; Julian O’Connell, Legal Division; 90 per cent of managers trained in the Andrew Browning, Investigation Division; John Alston, Commission’s OHS and injury management system by December 2006 – 96 per cent of Corporate Services Division (Public Service Association managers received OHS training. delegate) and Sharon Osborne, Investigation Division (Public Service Association delegate) During 2006–07, the ICAC also achieved the following Executive representatives: outcomes: Theresa Hamilton, Deputy Commissioner; Lance all new staff undertook a VDU eye examination Favelle, Executive Director Corporate Services; conducted by HealthQuest Linda Waugh, Executive Director, Corruption new staff workstations were ergonomically Prevention, Education and Research Division; Mick assessed by an accredited occupational therapist Symons, Executive Director Investigation Division; Roy a total of 10 staff were reimbursed the costs of Waldon, Executive Director Legal and Solicitor to the receiving the flu vaccine Commission the OHS component of the corporate induction PowerPoint presentation was enhanced to Human resources representative: include reference to the ICAC’s code of conduct Virginia Tinson, Manager Human Resources and work progressed on an OHS portal to be used Administration for OHS refresher presentations for all staff in 2007–08 Public Service Association industrial officers: an intranet OHS PowerPoint presentation Rachel O’Shea and Dylan Smith was developed as a training guide for all new managers Executive Officer: ICAC’s Employee Assistance Program provider Michele Smith, Personal Assistant to the Commissioner/ made a presentation to staff Deputy Commissioner. electrical testing and tagging of relevant equipment was completed.
Chapter 8: Appendices 137 Occupational Health & Safety (OHS) Committee Susan Hay, Investigation Division The Commission’s OHS Committee continues to Mary Murabito, Legal monitor and oversee OHS issues within the ICAC as Mark Nolan, Assessments well as monitoring action taken to manage identified Steve Osborne, Investigation Division risks, which includes the conduct of quarterly Virginia Tinson, Corporate Services workplace inspections and meetings. Committee members take turns to present OHS training to all Cathy Walsh, Corporate Services. new staff, covering material on the Commission’s OHS and workers compensation policies, OHS, and Risk While there was an increase of two in the number Management Plan and OHS legislation. of work-related injuries that resulted in a claim for workers compensation, both were connected with the The OHS Committee members for 2006–07 were: re-occurrence of a previous related injury. The new claim did not require the coordination of a return-to- Aruni Wijetunga, Corporate Services – chair work program. Nicola Dunbar, Corruption Prevention, Education and Research Lance Favelle, Corporate Services – senior management representative
Table 49: Occupational health and safety incidents, injuries and claims 2006–07
No. of workers Journey Fall, Heat Total compensation Body Mental to/from trip, Hitting Other non- radiation injuries claims (provisional stress stress work slip objects specified electricity 2006–07 liability accepted) 5 2* 2 2 3*** 2** 2 18 3
* Work-related performance issues. ** Related to one incident of a near miss by a falling ceiling tile and one incident of fumes from water-saturated carpet. *** Two incidents occurred at external training courses, resulting in one injury.
APPENDIX 22: TRAINING STATISTICS
Table 50: Training attendance by division and core learning stream 2006–07
Core learning & Corporate development stream Assessments CPER services Executive Legal Investigation Total Information 17 29 20 5 7 39 117 technology Leadership/management 8 5 9 1 1 7 31 Organisational development 50 109 35 14 25 122 355 Project management 0 1 0 0 0 0 1 Risk management 6 16 18 1 6 51 98 Technical skills 16 21 13 0 18 133 201 Total 97 181 95 21 57 352 803
APPENDIX 23: CONSULTANCIES The Commission did not engage any consultants in 2006–07.
138 ICAC Annual Report 2006–2007 APPENDIX 24: PAYMENT PERFORMANCE INDICATORS
Table 51: Accounts payable 2006–07
Current 30 days 60 days 90 days $ $ $ $ July–Sept. 2006 - - - - Oct.–Dec. 2006 - 13,580 2,806 - Jan.–Mar. 2007 30,346 21,290 - - Apr.–June 2007 36,640 15,253 - -
Table 52: Payments on time 2006–07
Amount paid Target % Actual % on time $ Amount paid $ July–Sept. 2006 95 100 1,578,709 1,578,709 Oct.–Dec. 2006 95 98 1,825,985 1,842,371 Jan.–Mar. 2007 95 97 1,051,975 1,103,611 Apr.–June 2007 95 97 2,637,924 2,689,817
All performance indicators relating to payment of accounts were met and there were no instances where interest was payable on overdue accounts.
APPENDIX 25: ELECTRONIC SERVICE APPENDIX 26: INSURANCE ACTIVITIES DELIVERY The NSW Treasury Managed Fund provides insurance Over the past four years, the ICAC has developed cover for workers compensation, motor vehicles, public and implemented new external and internal websites. liability, property and miscellaneous items. Features of the external site include a facility for secure online reporting of corruption, which has The ICAC’s claims management for the 2006–07 fund enhanced site usability, and a significantly improved year is reflected in the deposit premiums for 2007–08. search engine. The new website has also allowed The ICAC has achieved an overall reduction in deposit improved publication of transcripts. premiums of 28.6 per cent, broken down as follows:
Implementation of the Trim Context Electronic workers compensation insurance reduction of Documents and Records Management System has given 2.3 per cent staff the capability for electronic self-service in creating public liability insurance of 17.9 per cent due to and managing documents and files. To take advantage a slight improvement in claims of less than of the latest advances in browser based self-service, $1 million in the primary pool the Commission has added electronic self-service modules to the Aurion human resources system which property insurance of 35.2 per cent due to a allow staff to make online enquiries and lodge human decrease in the declared total asset value of the resources forms. This function will be further extended primary pool from the beginning of 2007–08 to include online motor vehicle insurance of 9.6 per cent due overtime requests and approvals. to a reduction in claims costs, compared to an increase in the cost of the deposit premiums of The Commission has also implemented a wired and the primary pool of 4.6 per cent unwired broadband internet-based remote access facility for Commission staff in the field to improve the efficiency of their operations.
Chapter 8: Appendices 139 miscellaneous insurance of 82.5 per cent due to APPENDIX 30: CODE OF CONDUCT a reduction in large claims premiums from the previous period and a small decrease in the cost of 1. Introduction from the Commissioner overseas travel protection across the primary pool. The Commission was established to tackle corruption in the NSW public sector. It has three principal APPENDIX 27: MAJOR ASSETS functions: investigation, corruption prevention and public education. These functions can only be properly The Commission has no major assets and does not and effectively carried out if every Commission officer own any real estate. The Commission’s minor assets acts in accordance with their public duty, and the trust comprise leasehold improvements, computer equipment placed in them by the community. and technical plant and equipment. This code of conduct sets out the principles we are expected to uphold, and prescribes specific conduct APPENDIX 28: ENERGY MANAGEMENT in areas considered central to the exercise of the Commission’s functions. The code will be reviewed The Commission is committed to the NSW regularly, and updated and expanded to reflect changes Government’s policies on energy management and both within and outside the Commission. initiatives such as the use of electricity generated from renewable resources. This code applies to all employees of the Commission and other persons engaged to do work for the Wherever possible the Commission purchases energy- Commission. (Where the code says ‘Commission efficient equipment to assist in reducing its energy officers’, this includes other persons engaged to do consumption. work for the Commission).
Any one of us may be faced with ethical dilemmas in The Commission achieved an overall reduction in both our working life and personal life. This code of electricity consumption of 7.6 per cent on the previous conduct has been developed to guide us in making reporting period. The consumption of electricity decisions and in determining an appropriate course of generated from renewable resources increased by 21.8 action that is supported by our corporate values. per cent and use of electricity generated from coal reduced by 8.4 per cent. As individuals, we are responsible for our own actions. In the event that any of us becomes aware of, or There was a 33 per cent increase in the Commission’s witnesses, unsatisfactory actions by other Commission vehicle fleet due to the addition of two new vehicles, employees or persons engaged by the Commission, but fuel consumption of kilometres per litre was down each of us is obliged to report that to a senior staff by 10 per cent on 2005–06. member or to the Solicitor to the Commission.
APPENDIX 29: WASTE REDUCTION AND Breaches of the code or any of the principles PURCHASING POLICY and guidelines that it describes may lead to the Commission taking disciplinary action. The Commission continues to increase the amount If you are unsure of any aspect of this code consult of waste material it recycles in line with government your line manager, a director, or the Manager, Human requirements. Actual data on the quantity of recycled Resources and Administration. waste material is not available as recycling is managed by the building lessor who does not retain data on this Yours sincerely service.
Since 2004–05 the Commission has reduced its overall paper consumption (general office use, publications, reports, educational material, and so on) by 41 per cent. The Hon Jerrold Cripps QC The total recycled content of all paper consumed during Commissioner 2006–07 was 77 per cent.
140 ICAC Annual Report 2006–2007 Our corporate values are to: We should:
1. advance the public interest treat members of the public, officers of the 2. act ethically and with integrity Commission and other public officials with respect, courtesy, honesty and fairness, and have proper 3. be fair, impartial and accountable regard for their interests, rights, safety, health and 4. strive for excellence welfare 5. be tenacious and professional in pursuing our aims ensure that our work habits, behaviour and 6. respect each other and support each other with personal and professional relationships at the an emphasis on teamwork workplace contribute to a harmonious and productive work environment 7. preserve the ICAC’s independence. perform our work honestly, diligently and with 2. Our conduct as Commission officers commitment make decisions in a fair and timely manner, giving The name and powers of the Commission must be used due attention to relevant information, legislation with restraint, and with an awareness of their potential and Commission policies and procedures effect on individuals. These powers must never be used to gain personal advantage or pursue personal issues. respect diversity of thought, experience and skills observe common courtesies and etiquette in terms 2.1 Our employment of day-to-day relationships By accepting employment or engagement with the comply with lawful or reasonable instructions given Commissioner of the ICAC we are obliged to be aware by an authorised colleague. of and comply with this code of conduct, and have undertaken to: 2.3 Conflicts of interest
engage in personal or professional conduct that will The work of the Commission must not be uphold the reputation of the Commission compromised or affected by any personal interest. abide by the secrecy and confidentiality provisions A conflict of interest arises when our public duty of the Independent Commission Against Corruption Act conflicts with a private interest that we may have. The 1988 (the ICAC Act) public interest must come first on all such occasions. in accordance with Commission policies and Conflicts of interest, or the perception that they have regulations, fully and openly disclose to the arisen, can do great damage to the reputation of the Commission personal particulars and financial or Commission and its staff. other interests. Any significant changes to those interests should be disclosed. We can all have real, potential or perceived conflicts of interest. These can be financial or non-financial. It is our We must be continually alert to our individual responsibility to ensure that the situation is properly employment obligations to ensure we are acting managed, including by reporting the situation to our line ethically, responsibly and productively. manager and advising our manager of any changes to We are committed to certain fundamental values in that situation. all our interactions with public sector agencies, other We must check our Declaration of Interests at regular organisations, individuals and our staff. intervals, and make amendments to reflect any changes 2.2 Ethical behaviour and decision-making in our interests as they occur. We are obliged to meet the same standards of ethical If in doubt seek advice from your line manager, the behaviour and accountability that the Commission Security and Risk Management Officer, the Manager of promotes in its dealings with other government Human Resources and Administration, or an Executive organisations. Director. For more information refer to our Conflicts of Interest Policy.
Chapter 8: Appendices 141 2.4 Gifts, benefits, bribes or favours Further guidance about these issues can be found in We should never create the impression that the our Phone Policy, Private Use of Commission Property Commission or any of its officers is being influenced by Policy, Use of Commission Vehicle Policy, Electronic any person or organisation. Mail Policy and Procedures, External Systems Access Policy, Internet Access Policy, and Cab Charge As Commission officers we may be offered gifts, Procedures Policy. benefits, travel, hospitality or other inducements during the course of our work. The acceptance of gifts and 2.6 Political, community and personal activities other benefits has the potential to compromise our As individuals we have the right to participate in position by creating a sense of obligation in the receiver political and community activities and to pursue and so undermine our impartiality. It may also affect the personal interests, provided we do so in a private public perception of the integrity and independence of capacity and do not allow a conflict of interest to arise. the Commission and its officers. We must ensure that any participation in political We should never solicit any money, gift or benefit and activities does not conflict with our primary duty should never accept any offer of money. To do so may to advance the public interest in a politically neutral constitute bribery. Bribery is soliciting, receiving or manner. offering any undue reward. A reward can encompass anything of value and is not limited to money or We must also be aware that involvement in or tangible goods. The provision of services may amount association with a political party may limit or to a reward. prevent our involvement in particular Commission investigations and projects. This is because the There are some circumstances when to refuse a gift Commission can be required to deal with matters that would be perceived as rude or offensive. are politically controversial and sensitive.
We must exercise sound judgement when deciding In participating in any political, community and personal whether or not to accept a gift or other benefit. activity we must ensure that: Officers should ensure that the Gifts and Benefits Declaration is completed and submitted. If unsure, seek any comment we make or discussion we have advice from your line manager and consult our Gifts does not cast doubt on our ability or willingness and Benefits Policy. to implement Commission policies and guidelines objectively 2.5 Use of public resources we do not participate in private political activities in Public resources must be used efficiently and the work environment appropriately. we do not use Commission resources to assist us The resources we use at work are publicly funded in our political, community or personal activities resources, including our time. These resources include– we do not use information obtained through our but are not limited to–facilities, computers, printers, work at the Commission to assist our political, motor vehicles, the internet, mobile phones, credit and community or personal activities, or make such fuel cards, and people. Because these resources are information known to any other person publicly funded, our use of them needs to be efficient we do not misrepresent the position of the and appropriate. Commission on any issue. It is our obligation and responsibility to use publicly It is our obligation to ensure that any involvement in funded resources in accordance with government political, community or personal activities is understood legislation and policy. Limited private use of the to represent our personal views as a private citizen. It Commission’s resources may be permitted in some is also our responsibility to ensure that our manager is cases. However, our private use of the Commission’s made aware of any political association that may affect, resources, including our time, should be short, infrequent, or be perceived to affect, a matter that we encounter in and should not interfere with Commission work. our day-to-day work.
142 ICAC Annual Report 2006–2007 2.7 Secondary employment or other activities 3. Our workplace Engaging in outside, or secondary, employment, We should treat everyone with respect. professional activities or even volunteer work may have the potential to compromise or be seen to 3.1 A workplace free of discrimination, compromise our duties as a Commission officer. For harassment and bullying example we might not know that a potential employer We are required to deal with individuals and was of interest to the ICAC. organisations fairly, properly and with integrity, as well as Prior to engaging in any secondary employment or recognise that each individual has rights as a citizen. other professional activity we should seek advice Discrimination and partiality, either within the from our line manager. We should only commence Commission or in dealings with people and secondary employment once we have received organisations outside the Commission, are unacceptable. formal authorisation from the Commissioner for that employment. We are all obliged not to harass, bully or discriminate against our colleagues or members of the public on the For further details regarding secondary employment grounds of gender, marital status, pregnancy, age, race, and how to apply for authorisation, refer to our ethnic or national origin, disability, carer responsibilities, Secondary Employment Policy. transgender status, religious beliefs, sexual orientation, 2.8 If we leave the Commission medical conditions, political and trade union affiliations. We have an obligation to carry out our work We should take all necessary steps to prevent and deal professionally, impartially, with integrity and in the best with harassment, bullying and discrimination in our interests of the Commission. work environment and to report it if it occurs.
If any one of us intends to accept a position with For more information refer to our Bullying and another organisation we should advise our Executive Harassment Prevention Policy, the Equal Employment Director as soon as possible so that any conflict or Opportunity (EEO) Policy and the Anti-Discrimination Act potential conflict of interest can be managed. 1977 (NSW).
When we leave the Commission, in accordance with 3.2 A workplace that is safe and secure the ICAC Act we should respect the confidentiality Safety of information that we have come across in our work, and the Commission’s intellectual property rights We are expected to understand our responsibilities and over material produced by the Commission, including obligations under occupational health and safety (OHS) material produced by us while at the Commission. legislation. We should be proactive in ensuring that our workplace is safe and secure for everyone, including When we cease duty with the Commission we identifying, assessing and reporting safety risks and cannot take any Commission resources such as hazards. manuals, documents, materials or other information or equipment, unless authorised. These items are the We have an obligation to ensure that personal use of property of the Commission. alcohol or other drugs does not affect our performance or safety, or the performance or safety of others. Being a former employee of the Commission does not Inappropriate consumption of alcohol or other drugs entitle a person to favourable treatment or access to may adversely affect the image of the Commission. confidential information. Security We have obligations to keep our workplace secure by being aware of and reporting suspicious visitors and/or unusual events. It is important that we are familiar with our security policies and procedures.
Chapter 8: Appendices 143 For more information refer to our Managing Alcohol 4.2 Making public comment on the and Other Drugs Policy, Occupational Health and Safety Commission’s work Policy, Workplace Injury and Management and Workers Only officers authorised by the Commissioner can Compensation Policy, Anti Tail-Gating Procedure, and make official public comment about the Commission. Security Passes and Cards Policy. The unauthorised or improper release of information to the media may compromise an investigation, 4. Our obligations regarding Commission adversely affect the reputation or safety of individuals, information or undermine public confidence in the Commission. The security of information and protection of persons working with or dealing with the Commission must be In general, Commission officers are not authorised to assured. make official public comment about the Commission. Any media enquiries should be immediately referred to 4.1 Using and protecting confidential the Media Manager. information We are able to discuss Commission work that is Commission work involves access to confidential already in the public domain, such as published reports information. We must not disclose any information that and discussion papers, annual reports, public relations we acquire during the course of our work except in the material, transcripts of public hearings, media releases, exercise of the Commission’s functions. To do so may and public addresses. be an offence under section 111 of the ICAC Act. We should ensure that others are aware that we are We are obliged to ensure that we deal with information only discussing material that is in the public domain, appropriately and use it only for the purposes of to avoid the perception that we may be telling people the Commission. Information may be disclosed in something that is confidential. This is a good rule to accordance with the Commission’s Security of Sensitive observe, for example, when talking to family, friends Material Policy, or if the Commissioner certifies that it or acquaintances, when on public transport, in social is necessary in the public interest to do so. settings, or at a café, party or pub. We should also exercise caution and sound judgement If uncertain as to whether information is in the public in discussing such information with other Commission domain, consult the Media Manager or your line officers. Normally information should be limited to those manager. who need it to conduct their duties, or who can assist us to carry out our work because of their expertise. For more information refer to our Policy and Practice in relation to the Media. We should remember that former Commission employees will not be given favourable treatment or 4.3 Intellectual property access to confidential information. We should respect the Commission’s intellectual Improper use of information could result in harm property rights over material produced by the to another person, interfere with the integrity of an Commission. investigation or otherwise reduce the effectiveness of Anything we develop, invent or create, either alone the Commission. We must not use information to gain or in collaboration with others in the course of our a personal or commercial advantage for ourselves or employment or engagement with the Commission, another person. remains the intellectual property of the Commission. Commission files and other confidential documents On occasion, it may be in the public interest for the and information are not to be removed from the Commission to share its intellectual property with premises except in accordance with the Commission’s other agencies, but this must be authorised by the security policies and procedures. If in doubt as to Commissioner. how to manage or secure sensitive material, consult our Security of Sensitive Material Policy or your line If we leave the Commission we should respect the manager. Commission’s intellectual property rights over material produced by the Commission.
144 ICAC Annual Report 2006–2007 For more information refer to our Intellectual Property large quantities) or it might be absolute (e.g. where Management Policy. $200,000 is spent on supplies never used).
Maladministration 5. Unacceptable conduct Maladministration includes action — or lack of action Unacceptable conduct is conduct that is — of a serious nature by a public employee that is: unethical, unfair, unlawful or corrupt, or involves maladministration or serious and substantial waste. against the law unreasonable, unjust, oppressive or discriminatory, It is critical that we as Commission officers practise or the conduct we expect of others. The integrity and based wholly or partly on improper motives. public image of the Commission could be seriously compromised if any of us engage in conduct that is For more information on these definitions refer to the corrupt, unlawful, unethical or unfair. Ombudsman Act 1974, the Public Finance and Audit Act 1983, the ICAC Act, and the Protected Disclosures Act The Commission will not tolerate any officer engaging 1994. in misconduct, corrupt conduct, maladministration or serious and substantial waste of public resources. 6. Accountability and reporting
Misconduct We are required to comply with the principles and guidance in this code of conduct. Misconduct may involve deliberate acts or acts that contravene the ICAC Act, this code of conduct, or If we suspect or become aware of conduct inside other Commission policies. Misconduct refers to many the Commission that is unethical, unfair, unlawful or different factual situations that are considered under corrupt, or which involves maladministration or serious legislation or by the Commission to be unethical, unfair and substantial waste, we should promptly report it to or unlawful. our line manager, the Solicitor to the Commission or the Commissioner. Misconduct includes, but is not limited to, acts of carelessness, neglect, deceit, bullying, discrimination, 6.1 Misconduct harassment, or the misuse of position or information If we become aware of conduct that is unethical, unfair arising from a conflict of interest, as well as taking or unlawful, such as bullying, harassment, or involving reprisal action against someone for making a protected a breach of this code, we should report it to our line disclosure. Misconduct includes conduct that happened manager or to the Solicitor to the Commission. If the while an officer was not on duty, or before an officer matter concerns the Solicitor to the Commission it was appointed to his or her position. should be made known to the Commissioner directly. Corrupt conduct For further information refer to our policy on As public officials we have specific powers, functions Procedures Relating to the Handling of Complaints of and knowledge because of the positions we hold. Misconduct Against Staff. Corrupt conduct occurs when a public official uses or attempts to use that position for personal advantage. 6.2 Corrupt conduct, maladministration or Corrupt conduct can also occur when a member of waste within the Commission the public influences or attempts to influence a public If we become aware of conduct that may involve official to use his or her position for a purpose other corrupt conduct, maladministration or serious and than the benefit of the public. substantial waste we should promptly report it. The Serious and substantial waste Protected Disclosures Act 1994 will generally be applicable to complaints made by officers about such conduct to a Serious and substantial waste refers to uneconomical, line manager, the Solicitor to the Commission or to the inefficient or ineffective use of resources that results Inspector of the ICAC. in loss/wastage of public funds/resources. Serious and substantial waste might be systemic (e.g. where there We should report such conduct that we suspect or is a pattern of waste that might be low-level or involve encounter in the course of our duties. We should also
Chapter 8: Appendices 145 make a report if we suspect that another Commission The Ombudsman and Auditor-General are no longer officer is engaged in corrupt conduct, even if that able to investigate complaints about ICAC officers corrupt conduct is unrelated to the officer’s duties for made directly to them, although the Inspector of the the Commission. ICAC may refer matters to them.
Protected disclosures 6.3 Reporting unacceptable behaviour outside Under the Protected Disclosures Act 1994, a ‘protected the Commission disclosure’ is a voluntary report by a public official The nature of our work means that from time to about corrupt conduct, maladministration or serious time we may become aware of suspected corrupt and substantial waste within the NSW public sector. conduct which has not been otherwise reported. As The Protected Disclosures Act 1994 acknowledges the Commission officers it is our responsibility to lead by difficulty we may face when making a report about example in reporting suspected corrupt conduct. another public official. For example we may personally observe a public official The Act provides certain protections against reprisals engage in a suspect act, a friend may tell us something for employees who report such matters and makes it because we are a Commission employee, or someone an offence for detrimental action to be taken against a may seek to enlist us into an improper arrangement person for making a protected disclosure (but not for during the course of conducting government business. vexatious or malicious complaints). The Act applies to complaints made about the actions of public officials Although we are not obliged to report corrupt conduct from other agencies as well as those involving the that we may suspect or encounter by the general public agency by which the public official is employed. outside the course of our duties, we are encouraged to do so. We should make such reports in writing to our Internal reports by staff that fall within the Protected line manager or to the Solicitor to the Commission. Disclosures Act 1994 will be treated as a ‘protected disclosure’ and handled in accordance with the 6.4 Breaches of the code of conduct Commission’s Reporting of Protected Disclosures by By accepting a position or engagement with the Commission Officers Policy. Commission we have agreed to abide by this code of conduct. We can make a protected disclosure in the knowledge that it is an offence to take detrimental action against a Breaches of the code or any of the principles and person in reprisal for making a protected disclosure. If guidelines that it describes may lead to the Commission we believe that we have been detrimentally treated for taking disciplinary action. Disciplinary action may having made a protected disclosure, we should report include counselling, official notification of unsatisfactory this directly to the Commissioner. performance, dismissal, prosecution, and a number of other measures described in our Misconduct, The internal investigation of complaints against staff is Unsatisfactory Performance and Serious Offences Policy. the responsibility of the Solicitor to the Commission, reporting to the Commissioner. Internal investigations are ordinarily conducted by a member of the Executive 7. Applicable legislation and a report submitted to the Commissioner for Anti-Discrimination Act 1977 (NSW) and consideration of appropriate action. In the case of more Commonwealth legislation relating to discrimination serious or difficult investigations, outside assistance may on the grounds of race, sex and disability be engaged. Crimes Act 1900 (NSW) Some staff may prefer to make a complaint to someone Freedom of Information Act 1989 (NSW) outside the Commission. Complaints involving corrupt Independent Commission Against Corruption Act 1988 conduct, maladministration or serious and substantial (NSW) waste on the part of Commission officers may be made to the Inspector of the ICAC. The Inspector Industrial Relations Act 1996 (NSW) is an investigating authority for the purposes of the Occupational Health and Safety Act 2000 (NSW) & Protected Disclosures Act and has jurisdiction to Occupational Health and Safety Regulation 2001 investigate such complaints.
146 ICAC Annual Report 2006–2007 Ombudsman Act 1974 (NSW) APPENDIX 32: MAJOR WORKS IN Privacy and Personal Information Protection Act 1998 PROGRESS (NSW) The Commission undertook no major works during Protected Disclosures Act 1994 (NSW) 2006–07 and hence there were no delays, amendments, Public Finance and Audit Act 1983 (NSW) and Public deferments or cancellations. All minor works in Finance and Audit Regulation 2005 progress were complete by 30 June 2007. Refer to the ICAC intranet for the relevant Commission policies. APPENDIX 33: GUARANTEE OF SERVICE When we are faced with an ethical dilemma, each of us should ask ourselves the following questions: As stated in its service commitment on the ICAC website, the Commission will: Is it legal? maintain as its primary concern the protection Is it consistent with Commission values, principles and of the public interest and the prevention of policies? breaches of the public trust Do I think it’s the right thing to do? be tenacious in fighting corruption and maintaining its independence What will the consequences be for my colleagues, the deliver services which are useful, practical, Commission and me? strategically targeted and appropriate What will the consequences be for other parties? respond to customer needs in a way which Can I justify my actions? maximises the impact of ICAC activities and makes the best use of resources What would be the reaction of my family and friends if they carry out its duties impartially and with integrity were to find out? meet the standards of ethical behaviour and What would happen if my conduct became front page accountability that the ICAC promotes in its news? dealings with other government organisations If you are unsure of the answer or what to do, speak to have regard for the impact of its work on your manager or a more senior Commission officer. organisations and individuals.
Remember … The ICAC welcomes comments from the public on the Managers are a resource to help us resolve problems quality of its service. These can be made by telephone and make ethical decisions, as well as help us manage 02 8281 5999 or sent in writing to: GPO Box 500, unintentional acts that may breach the code. Sydney NSW 2001.
Complaints about the conduct of Commission staff APPENDIX 31: REVIEW OF CREDIT should be referred to the Inspector of the ICAC. CARD USE
No irregularities in the use of corporate credit cards by staff have been recorded during the year. I certify that credit card use at the ICAC has been in accordance with Premier’s Memorandum and Treasurer’s Directions.
The Hon Jerrold Cripps QC Commissioner
Chapter 8: Appendices 147 budget, 14, 44, 68 INDEX Building approvals, 16, 18, 45 building licences, 40, 111, 114, 117 Note: see also construction industry bullying and harassment, 21, 69, 143 References in this index refer to page numbers. business activity compliance, 63 Page numbers in bold refer to major subject areas. business case preparation, 74, 75 Page numbers shown in italics refer to information included in tables. C
A charter, 8 Chief Executive Officer, 57, 130 Aboriginal land councils, 47, 113, 132 Chinese community, 57 Aboriginal Land Rights Act 1983, 132 Classification Committee, 137 Aboriginal and Torres Islanders (ATSI) representation, 132, 133 CMC see Queensland Crime and Misconduct Commission access and equity, 73, 131–135, 136 code of conduct, 68, 69–70, 74, 124, 140–147 Acclaim Education, 48 coercive powers, 32 accountability, 11, 60–66, 120 Commission Consultative Group, 69, 73, 74, 137 external, 60–61 Commissioner, 4–6, 33, 140 internal, 61, 145 community activities, 142 accounts payable, 139 Community Attitude Survey, 55–56 achievements, 9, 11, 12 Community attitudes to corruption and the ICAC, 66, 124 Administrative Appeals Tribunal (Cwlth), 64 community awareness, 55–56, 120 Administrative Decisions Tribunal, 118 Community Service Orders, 50, 65, 109, 116, 124 advice requests, 27, 52–54, 52, 53, 54 complainants, identifying, 20 allegations, 16, 23, 99, 102 complaints, 18, 100, 101 allied health sector see health sector profile, 99–108 annual report, 61, 65, 124 complaints about ICAC, 119 anonymous complaints, 15 complaints from the public see Section 10 complaints Anti Discrimination Act 1977 (NSW), 143, 146 compulsory examinations, 9, 33, 34, 38–39 appendices, 97–147 conduct assessment enquiries, 27 Arabic community, 57 conduct, unacceptable, 145 AS7799.2:2000, 72 conferences, 124 assessment panel, 26–29, 28 confidentiality, 20, 21, 47, 119, 143, 144 assessment process, 25–28 conflicts of interest, 24, 41, 49, 54, 55, 141, 143 Assessments Section, 14, 26, 51–52 construction industry, 40, 111, 112, 114, 117 assets, major, 140 consultancies, 33, 138 Assistant Commissioners, 69 contact mode, 15 assumed identities, 37, 64 controlled operations, 37 Attorney General’s Department, 35, 60, 117 convictions, 40 audit committee, 72 Corporate Induction Program, 70 Audit Office of NSW, 57, 61 corporate performance information system, 74 Auditor-General, 146 Corporate Services Division, 68 AUSTRAC client liaison meetings, 122 corporate services, shared, 75 Australian Museum, 111 corrupt conduct, 5, 9, 22, 32, 41, 104, 105, 107, 145 Australian National University, 47 corruption Australian Police Professional Standards Council, 122 exposing, 8, 9, 14, 32–33 reporting, 55–56 Australian Public Sector Anti-Corruption Conference, 5, 11, 55, Corruption and Anti-Corruption Executive Program, 124 56, 124 Corruption Matters newspaper, 55, 57, 66, 124 B corruption prevention, 5, 10–11, 10, 27, 42, 44–58 advice service, 51–55 Board of Studies, NSW, 48 projects and publications, 50–51, 66 Breen, Hon Peter, 117 recommendations, 41–42, 50 bribery, 30, 142 Corruption Prevention, Education and Research Division, 26, brothels, 30 33, 44–45
148 ICAC Annual Report 2006–2007 Corruption risks in the NSW development approval processes, 45 evidence, 27 Corruption risks in occupational licensing, 51, 66, 124 Executive Management Group, 61, 64, 75, 130–131 councils, 11, 16, 28, 35, 39, 49–52, 55, 65 executives, 131 Burwood, 40, 49, 65, 124 Parramatta, 30, 38 F Rockdale, 110 Face, Hon Richard MP, 117 Strathfield, 113–114 financial analysis, 34 covert operations, 27 financial reports, 75 credit card use, review, 147 financial statements, 78–96 Crimes Act 1914, 146 freedom of information, 60, 120–122 Freedom of Information Act 1989, 118, 119, 146 D data archiving, 74 G database, ICAC, 26 gifts and benefits, 142 delegations, 128 goals, 75 Department of Aboriginal Affairs, 117 governance, 12, 63, 68, 72 Department of Communications, Information Technology and government sector, allegations, 16, 104 the Arts, 35 greyhound racing industry, 110 Department of Corrective Services, 49, 50, 117 guarantee of service, 147 Department of Education and Training, 48 Guidelines for principal officers, 55, 57, 66, 124 Department of Fair Trading, 111 Department of Health, 51 H Department of Housing, 22, 49, 117 hazard reports, 71 Department of Local Government, 17, 49, 57 Health Care Complaints Commission, 75 Department of Planning, 117 health sector, 11, 21, 51 Department of Premier and Cabinet, 70 Higher School Certificate, 48, 65, 124 Deputy Commissioner, 33, 130 housing, public, 22, 65, 109, 115, 117, 124 developers see planning and development HSC see Higher School Certificate development applications, 16–18, 45 human resources, 69–70 Dignity and Respect: Policy ..., 69 Director of Public Prosecutions, 5, 9, 41 I Disability Action Plan, 12, 73, 133, 136 disciplinary action, 41, 110–116 ICAC see Independent Commission Against Corruption dissemination, 14, 15 ICAC and public sector organisations, 55, 57, 66, 124 diversity training, 131, 133 Identity Crime Working Group, 124 identity information, 51, 65, 124 document scanning, 12, 68, 74 Independent Commission Against Corruption, 33, 65, 119, 120 documents, 34, 37, 120, 144 Independent Commission Against Corruption Act 1988, 119, 146 DVDs, training, 46 Independent Commission Against Corruption Amendment E (Operations Review Committee) Act 2006, 32, 38, 39 indigenous representation see Aboriginal and Torres Islanders EAPS see Ethnic Affairs Priorities Statement (ATSI) representation education function, 5, 10 industrial relations, 71 EEO see Equal Employment Opportunity Industrial Relations Act 1996 (NSW), 146 electronic service delivery, 139 information, 14, 15 Employee Assistance Program, 132 information management and technology, 12, 74 employees see staff Information Security Coordination Group, 73 employment, conditions, 71, 135 Inspector of the ICAC, 11, 60, 62, 146 energy management, 140 Institute of Public Administration, 56 enquiry, 14, 15 insurance activities, 139–40 equal employment opportunity, 69, 73, 131–134, 134, 143 Integral Energy, 111 ethical behaviour and decision-making, 141 intellectual property, 144–145 Ethnic Affairs Priorities Statement, 12, 73, 133, 136 intelligence function, 34 evacuation procedures, 71 intelligence reports, 14, 15
Index 149 Inter-Agency Technical Committee, 34, 122 mayors, 17 Inter-departmental Committee (IDC) for Department of Metropolitan Remand and Reception Centre, Silverwater, 117 Corrective Services, 122 Minister for Education and Training, 48, 117 Interception Consultative Committee, 35, 122 Minister for Local Government, 40, 65, 124 internal advice manual, 45 misconduct, 145, 146 International Management and Technology Steering Committee, multidisciplinary teams, 33 73 multiculturalism, 57 International Standards for Information Security, 12, 68, 72 internet, 139 N intranet, 147 National Investigations Symposium, 55, 56 Investigation Division, 26–27, 30, 32–33 NESB see non-English speaking background investigations, 5, 27, 32–36, 35, 36 New England, 5, 11, 56 prosecutions and disciplinary actions, 110–116 non-English speaking background, 57 reports, 39, 65, 124 North Coast, 5, 11, 56 Investigations Division, 27, 33, 61, 63 NSW Corruption Prevention Network, 123 Investigations Operations Manual, 33 NSW Department of ... see Department of ... ISO/IEC 27001:2005, 12, 68, 72, 74 NSW Digital Evidence Group, 35, 123 J NSW Government Action Plan for Women, 12, 132–133 NSW Grains Board, 110–111 Joint Initiatives Group, 122 NSW Health see Department of Health Joint Outreach Initiatives Network (JOIN), 123 NSW Ombudsman, 56, 57, 60, 64, 146 jurisdiction, 14, 15, 25, 26, 60,118, 128, 146 NSW Police, 22 NSW public sector see public sector agencies K NSW Treasury, 61 NSW Treasury Managed Fund, 139 key quantitative results, 8–12, 9, 11, 12 key results areas, 8, 32, 44, 60, 68 O Koompahtoo Local Aboriginal Land Council, 113, 117 objectives, 8, 11, 12 L occupation licensing and accreditation, 11, 51 see also WorkCover NSW Licensing Unit Law Enforcement Advisory Committee, 35, 123 occupational health and safety, 12, 137, 138 Law Enforcement (Controlled Operations) Act 1997, 60, 119 Occupational Health and Safety Act 2000 (NSW), 146 Law Enforcement and National Security (Assumed Identities) Act Occupational Health and Safety Committee, 73, 137, 138 1998, 60, 64 Occupational Health and Safety Regulation 2001, 146 learning and development, 70 Office of Fair Trading, 117 leaving ICAC, 143 Office of the Inspector of the ICAC see Inspector of the ICAC legal change, 119 Ombudsman Act 1974 (NSW), 147 Legal Division, 25–27, 33 Operations legislation, 14, 34, 36, 64,146–147 Agnelli, 110–111 Legislative Council, 117 Ambrosia, 40, 114 listening devices, 33, 37, 64 Aztec, 40, 49, 109, 115, 124 Listening Devices Act 1984, 60 Bligh, 40, 48, 124 litigation, 118 Cadmus, 40, 49, 109, 115, 116, 124 Lobbying local government, 51, 66, 124 Cassandra, 112 lobbying, 50–51 Cassowary, 114 Local Court Registry, Penrith, 115 Cordoba, 113–114 local government see councils Greenway, 22 Local Government Liaison Group, 123 Grenache, 111 Hunter, 115 M Inca, 115, 116 major works, 147 Muffat, 110 maladministration, 145 Pelion, 38 Managing conflict of interest in the Public Sector –Toolkit, 54 Persis, 38, 40, 48, 109, 116, 124 matters received, profile, 14, 15, 26 Quilla, 38, 40, 48, 49, 109, 116, 124
150 ICAC Annual Report 2006–2007 Sirona, 38 Public Service Association of NSW, 71, 137 Squirrel, 111 publications, 5, 38, 50–51, 55, 57, 65, 66, 120, 124 Trophy, 110 publicity, 55 Unicorn, 113 Operations Manual, 64 Q Operations Review Committee, 118 Queensland Crime and Misconduct Commission, 5, 56 Orange Grove Centre, 50, 117 organisation, 12, 68–75, 120 R chart, 129 outcomes, 29, 29–30, 34, 41 radio, 57 outside jurisdiction, 14, 15 RailCorp, 38, 41, 48, 49, 65, 109, 116, 124 own initiative, 14, 15 recommendations, 117 recruitment processes, 24 P referral to another agency or no action by ICAC, 27–28 referrals from Parliament, 14, 15 paper trails, 33 reform, recommendations, 117 Parliament, NSW, 14, 15, 40, 117 Regional and Rural Outreach Program, 11 Parliamentary Joint Committee on the ICAC, 11, 60, 61, 120 regulatory function, 54 Parramatta Correctional Centre, 115, 116, 117 remuneration see salaries payment performance indicators, 139 reporting structure, 33, 61–62 performance results, 46, 68, 75, 139 reports, 5, 9, 14, 39, 100 plagiarism, 117 request investigation, report by another agency, 27 planning and development, 16, 18, 45 research projects, 45–46 policies and procedures, 9, 45, 68 research publications, 5 political activities, 142 results, 8–12, 9–12 posters and postcards, 16, 55, 57 risk assessment program, 33 Premier’s Department, NSW, 69 risk management, 12, 45, 71 premises, entry of, 37 road workers, 52 presentations, 125–128 Roads and Traffic Authority, 37–38, 48–49, 57, 65, 109, 116, 124 Prevention Management Group (PMG), 61, 63 RTA see Roads and Traffic Authority prisoners, orders to appear, 37 Rural and Regional Outreach Program, 56 privacy, 39, 60 Privacy and Personal Information Protection Act 1998, 119, 147 S procurement and disposal, 54 Profiling the NSW public sector ..., 124 safety certification, 112, 114, 117 Progress reports, 117 salaries and allowances, 71, 130, 134 prosecutions, 9, 41, 110–116 search warrants, 27, 33, 37 protected disclosures, 5, 15, 16, 19–21, 46, 99, 104–105, 146 secondary employment, 41, 143 Protected Disclosures Act 1994, 14, 20, 21, 146, 147 Section 10 complaints, 5, 14–18, 32, 35, 99, 102–104 Implementation Steering Committee, 123 Section 11 reports, 5, 14–15, 22–23, 25, 32, 35, 99, 106, 107 Protecting identity information and documents, 51, 65, 124 Section 12, 25 public, 55–56, 120 Section 14(2) reports, 40 public comment on ICAC, 144 security, 143–144 Public Finance and Audit Act 1983 (NSW), 147 accreditation, 12 Public Finance and Audit Regulation, 147 information, 68, 72, 144 public health see health staff, 71–72 public hearings, 30 Senior Executive Service, 130, 131 public inquiries, 5, 9, 22, 33–34, 37–39, 109, 120 Serious Offences Policy, 146 public reports, 42, 48, 65 significant committees, participation, 122–124 public resources, use of, 142 Special Networks Committee, 35, 123 public sector agencies, 10, 19–23, 34, 45, 48, 57, 104 special powers, 27 public sector agency complaints see Section 11 complaints speeches and presentation by ICAC staff, 125–128 Public Sector Executive Development Program, 70 Spokeswomen’s Program, 12, 133 Public Sector Rehabilitation Coordinators Network Forum, 123 staff, 14, 44, 68–69, 69, 71, 75, 131, 134, 135 Public Sector Women’s Forum, 133 Statement of Affairs, 119–120
Index 151 statement of information, 37 Working Together: Public Sector OHS ..., 68, 73 statutory powers, 33, 36–37, 37, 63–64 workplace, 18, 22, 23 statutory reporting, 108–109 complaints activities, 100, 101, 103, 107 strategic alliances, 34 ICAC, 71, 143–144 Strategic Investigations Group, 27, 33, 61, 63 protected disclosures, 20, 105 Strategic Plan 2006–10, 8, 75, 124 workshops, 5, 46 Strengthening the corruption resistance of the NSW public health sector, 66, 124 summonses, 37 superannuation, 25 suppression orders, 34 Supreme Court, 61, 118 surveillance, 33 Surveillance and Technical Unit, 74 swimming pools, 28
T
TAFE, 40, 117 Telecommunications Act 1997, 35 Telecommunications (Interception) Act 1979, 37, 60, 119 telecommunications intercepts, 33, 36, 64 tenders, contracting and procurement, 28, 49 timeframes, 108, 109 trade licences, 111 train-the-trainer resource, 51 training courses, 5, 11, 46, 46–47, 68, 70, 125–128, 138 training packages, 51 translations, 57 transparency, 52 travel, overseas by ICAC, 128 Trim Documents and Records Management System, 139
U unacceptable behaviour, 146 universities, 25, 47 universities toolkit project, 47 University of Newcastle, 117 University of NSW, 117 University of Sydney, 117
V
VETAB, 117 videos, 57
W warrants, 37 waste reduction and purchasing policy, 140, 145 website, 12, 38, 55, 58, 65, 120, 139 Western Australia Corruption and Crime Commission, 5, 56 ‘Whistling While They Work’ Project, 45, 123 witness, 34, 39 work arrangements, flexible, 132, 133 WorkCover NSW Licensing Unit, 114, 117
152 ICAC Annual Report 2006–2007 Annual report
2006-2007 ICAC Annual report 2006-2007 Independent Commission Against Corruption
Independent Commission Against Corruption
Address Level 21, Piccadilly Centre, 133 Castlereagh Street, Sydney NSW 2000
Postal GPO Box 500, Sydney NSW 2001
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